×

Black Eye For BlackBerry Maker

Wall Street was closely watching the decline in RIM on Monday, after a misstep in its tablet rollout just left investors scratching their heads.

Due to an operating system flaw, the BlackBerry maker recalled about 1,000 of its Playbook computers with most of the affected devices sold by Staples.

RIM said the batch of 16 GB devices were shipped with "an OS build that may result in the devices being unable to properly load software upon initial set-up."

Although the recall was relatively small, and shouldn’t move the needle, “it's just another blemish from an execution standpoint," says Avian Securities analyst Matthew Thornton in a Reuters interview.

And another blemish is the last thing RIM needs considering its been dogged by troubles in recent months, disappointing investors by slashing sales and earnings forecasts soon after revealing a weak earnings outlook.

How should you play it?

Mike Abramsky of RBC Capital Markets thinks the stock will be range bound for a while.

However it's always worth noting he says, "it's trading around 6 times earnings which is a historical low. If you think the stock could rebound to 7 or 8 times (earnings), which would be quite egregious relative to its growth rate take advantage of this weakness."

But he adds, “I don’t see a big catalyst until later in the year.”

*Check out our entire conversation with Mike Abramsky. Watch the video now!



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On May 16, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Stephen Weiss is short (X). Stephen Weiss owns (DVN), (COP), (QCOM), (BRCM), (TEVA), (KO), (RIG), (HK), (AKAM), (UUP), (DE), (UAL), (MRK), (HBAN), (KEY) and (JPM); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (JPM); Terranova owns (V); Terranova owns (BX); Terranova owns (UPL); Terranova owns (BAX); Terranova owns (PFE); Terranova owns (PEP); Terranova owns (MCD); Terranova owns (TM); Terranova owns (DIS); Terranova owns (BJ); Terranova owns (APA); Terranova owns (OXY); Terranova owns (XOM); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Karabell owns (RIMM); Karabell owns (SLV); Karabell owns (AAPL); Karabell owns (GE); Karabell owns (GOOG)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC
Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Zachary Karabell
River Twice Capital owns (QCOM)
River Twice Capital is short (LCC)
River Twice Capital is short (SPY)
River Twice Capital is short (QQQ)

For Amelia Bourdeau
**No Disclosures


CNBC.com with wires.