Is This Stock A Short?
RIMM could be a short…
My research finds 700 million+ cell phones but only two million, growing to
three million RIM subscribers in CY2005. For all the hype and attention, RIM’s
niche is tiny and “only” projecting 50% growth.
Let’s see… 16% growth on a 55 P/E and market cap nearly 12x sales: Based on
fundamentals and valuation, who needs to rush out and buy this stock? The
service is certainly “cool”, and I personally love it — awesome; convenient —
but it’s also expensive and not that hard to duplicate with other
currently-available technology.
A close in here ought to do the trick on the RIMM short. I am looking for a test
of $65-ish in the next two to three weeks. The stop should get rolled down to
Friday’s high (any move over that would signal control by the bulls).
Melanie Hollands