What's Wrong With RIMM?
Usually a darling of Wall Street, shares of Research In Motion closed down about 8% on the week. Is this the buying opportunity you’ve been waiting for ahead of the “BlackBerry” Bold launch in the U.S.?
It might seem like a no-brainer, but there could be more than meets the eye. Although this stock surges and then pulls back regularly when Research In Motion dropped to 121.36 mid-day it sliced its 50-day moving average.
Also the latest downtick comes after Dell signaled the tech slowdown is spreading and chipmaker Marvell Technology, whose chips are used in the BlackBerry, gave a conservative outlook for the third quarter.
How should you trade these developments?
According to the Fast Money gang, if you can buy and hold this stock remains attractive.
I would look at RIMM somewhere around $115, says Joe Terranova. Long term I think it’s a $140 stock.
I agree that RIMM has the potential to spring higher, adds Pete Najarian. And keep an eye on Palm; they’re having great success with their smartphone.
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Trader disclosure: On Aug 29, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;Karabell Owns (AAPL), (BHP), (CHL), (GLD), (GOOG), (JPM), (NOK), (SLB); Najarian Owns (LEH) Puts Spread; Najarian Owns (RIMM) Call Spread; Najarian Owns (WFC) Call Spread
Najarian Owns (MS) And Is Short (MS) Call; Najarian Owns (NOK) And Is Short (NOK) Call; Finerman Owns (GS); Finerman's Firm Owns (MSFT), (NOK), (SUN), (TSO), (VLO); Finerman's Firm And Finerman Own (C) Leaps; Finerman's Firm And Finerman Own (GLNG); Finerman's Firm Is Short (IYR), (IWM), (MDY), (SPY), (IJR), (BBT), (COF); Terranova Owns (NOV), (KOL), (X), (GS), (SA), (VLO), (RIMM), (AAPL), (EOG); Terranova Owns (POT); Terranova Owns (FCX)
Terranova Owns (AIG) Puts; Terranova Is Long Dec. 2008 Reformulated Gasoline Crack Futures
Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (ABD), (ARE), (BRE), (CNTY), (CLB), (OFC), (DLR), (ESS), (EXR), (FL), (IAT), (IGE), (LNET), (MAC), (OIIM), (PSPT), (DBC), (DBV), (SLB), (SKT), (BLV)
Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)