Sonofabitch. RIMM is up $22 in after hours trading...

Discussion in 'Stocks' started by ByLoSellHi, Sep 28, 2006.

  1. Why the helll don't I follow through with trading ideas, such as buying $90 call options last Friday?
  2. lawsuit or something?
  3. No, they revised guidance way upwards.

    Research In Motion Rockets

    By Bill Snyder Senior Writer
    9/28/2006 6:53 PM EDT
    Click here for more stories by Bill Snyder

    Updated from 5:57 p.m. EDT

    Shares of Research In Motion (RIMM - news - Cramer's Take) jumped nearly 20% after hours as the company's third-quarter guidance blew past Wall Street's estimates.

    The news completely overshadowed an earlier announcement that the maker of the popular BlackBerry email device has begun a voluntary probe of its stock option practices and will restate years of earnings.

    RIMM's second quarter was also above expectations, and in late trading shares were up $16.74, or 19.5%, to $102.80.

    The Canada-based company reported a profit of $140.8 million, or 74 cents a share, up from last year's profit of $111.1 million, or 58 cents a share. Sales were up 34.4% to $658.5 million.

    Excluding $4.3 million attributed to the cost of employee stock options, RIMM posted a profit of 77 cents a share.

    Analysts polled by Thomson First Call were looking for a profit of 71 cents, including the cost of options, on revenue of $644.29 million.

    But it was the surprisingly robust guidance for the third quarter that propelled the stock. RIMM forecast a profit of 88 cents to 95 cents a share, including the cost of stock options, on sales ranging from $780 million to $820 million.

    Wall Street was expecting a profit of 78 cents a share (on the same basis) on revenue of $700 million.
  4. nassau


    it's a bogus move...looking to hit high 105-6area? but then it will fall..they state that the earnings they are reporting are not accurate adn may need to be per options backdating etc..

    this is the big boys cleaning out all the shorts ...if you noticed the volume that took the stock 22 dollars was less than a standard days volume..
    i am guessing a lot of shorts licking their wounds..
    now its a great short..fibo min pullback 85-90 next fews days/wk
    or if you look at fibo from 60 to 105..pullback could hit high 70's..
    personally with the volitility tomorrow I would write calls
    good luck with your trade

  5. I swear I was just thinking the same thing after posting this (yeah - I know - suuuure I was), but you beat me to it.
  6. wow on earnings. I'm not even a stock guy and I know that RIMM is historical volatile, but nearly 20% on just earnings, isn't that a lot?

    Maybe this is piggybacking on the tech move as of late, HP and the rest. Hell oracle is almost 20 bucks now.
  7. dammit.

    i knew RIM was going up.
  8. What does everyone think about October $100 Puts if it opens above $100 tomorrow?
  9. mcelitetrader

    mcelitetrader ET Sponsor

    How about this trade.....long rimm at 85.30 at 4:12.....sell at 85.99. I took a sweet 69 cents out of the move....I was trying to find a good source to get the release...when i came back.....Moonball.

    I believe a DOH ! is in order.......Double DOH !
  10. The first headline that came out just seconds before the earnings release was about the "internal investigation into backdating of options". RIMM dropped almost almost 5 points (almost hit 80 dollars!!!). Then the #'s were released and it went ballistic.

    Funniest part is that the company says their earnings #'s "are not reliable", and then they blow away their #'s and everyone panics to buy!
    #10     Sep 28, 2006