With smartphone demand exploding and RIM owning 45% of the US market, why have RIM shares plunged 20% over the past 3 months?
That’s the question circulating on Wall Street as investors grapple with stock’s anemic price action. (In the same period Apple has surged 20%.)
It seems headwinds are coming from two main areas:
1) Apple; which is expected to win more business clients with the launch of the new iPhone 4
2) Android; smartphones using this operating system are generating strong demand.
In fact, Goldman Sachs analyst Simona Jankowski believes RIM could see their market share plunge in the near future because of these influences. Jankowski has a 'sell' on the stock.
What's the trade?
Options action has been pretty bearish, reveals Mike Khouw of Cantor Fitzgerald.
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Trader disclosure: On June 21, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (IPSU), (BX), (PFE), (GMCR), (RSX), (TER), (AXP), (KO), (BMO), (BBY), (DIS), (XCO), (SWN), (AAPL), (IPI), (AGU), (SU), (XOM), (RDS.A), (FXB), (V), (TEVA), (COP), (OXY); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman’s firm own (AAPL); Finerman & Finerman’s firm owns (BBY); Finerman’s firm owns (BP) calls; Finerman’s firm owns (C); Finerman & Finerman’s firm owns (CVS); Finerman owns (FRO); Finerman & Finerman’s firm owns (GOOG); Finerman & Finerman’s firm owns (IBM); Finerman owns (JPM) and calls; Finerman’s firm owns (JPM); Finerman owns (RIG) calls; Finerman’s firm owns (RIG) calls; Finerman owns (TGT); Fienrman owns (WMT); Finerman owns (TK); Finerman is short (IJR); Finerman is short (IWM); Finerman is short (MDY); Finerman is short (SPY); Finerman owns Russell puts; Finerman is short (IYR); Finerman is short (SPY); Finerman owns (IWM) puts’; Grasso owns (ABK); Grasso owns (BAC); Grasso owns (BGP); Grasso owns (C); Grasso owns (DYN); Grasso owns (JPM); Grasso owns (LPX); Grasso owns (NDAQ); Grasso owns (PRST)
For Scaramucci
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Terranova is chief market strategist of Virtus Investment Partners, LTD.
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David Riedel
***No Disclosures***
Gene Munster
Piper Jaffray makes a market in (AAPL), (AMZN), (BIDU), (DRIV), (EBAY), (GOOG), (IACI), (SINA), (YHOO)
Mike Khouw
Cantor Fitzgerald makes a market in (LEN)
Doug Sipkin
Ticonderoga Securities LLC Is A Market Maker In (SF), (MS), (RJF), (BLK)
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