RIMM has been sinking. The last buy recommendation has resulted in a 10% profit. Tradedragon does not post real time trades. I sold my RIMM at $54, after buying it at $49 the other time. Reasons for selling were due to technical resistance level.
I did not expect the sharp drop in share price after that as I switched focus to other sectors including financials and materials. Thus I was lucky to escape the news that Blackberry is facing bans in India, UAE and Saudi.
This is indeed a fatal blow to RIMM as such network bans make blackberry obsolete. The reason ppl love blackberry is due to its highly secure messaging service. And now countries are starting to ask blackberry to stop being too secure…
If Blackberry is not as secure as before, there is no point in buying a blackberry. Corporations may consider moving to Android or Windows or even the iPhone as they have better interfaces and better open app…
The only reason to buy blackberry now is that it is on a major technical trend support.
Blackberry biggest customer pool is still in the US, thus the company still has some fundamentals to allow it to profit. However, it is facing tightening margins due to cheaper sales of its handsets. The blackberry torch had a sad launch. Taking profit once it has gone up 5 to 10%.
If RIMM takes off, if its handsets become so popular again, then this may be a $80 stock. But if it does not… then it is feared that this will continue to be a $50 stock.
GOod news include share buybacks signaling that the shares are too cheap.
Disclosure: No positions. Will not be playing blackberry.
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