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    Throwing Caution to the Wind with RIMM

    By MarketMatador | May 10, 2007




    Hey this is a guest blog by Sam from MarketMatador.com!

    May 9th 2007 – Investors watched Research in Motion (RIMM) rally over 5 percent, continuing the bull run from previous sessions. Investor confidence has greatly increased, as the the possible threat from the iPhone is subdued. With new phone releases to come and a positive analyst day, RIM has thrown caution to the wind, rallying about 17 percent from the beginning of May.

    MarketMatador.com 6-Month Chart

    After the recent buying of Research in Motion, investors should approach the stock at incredibly conservative levels. Analysts and investors may also be approaching the new iPhone with a swagger that may not hold true. Analysts are also suggesting that the iPhone will take up to 2 years to get all the kinks out of the phone. The very suggestion contradicts many previous Apple (AAPL) product releases and the reputation that the company has built for making more reliable products.

    “There’s also a realization that RIMM’s business could remain unaffected by the upcoming release of Apple’s iPhone, whose features are likely to appeal to a different audience from RIM’s, say analysts.” (SOURCE)

    RIMM investors must not underestimate the power behind the iPhone, despite targeting different markets. Investors should bear in mind that RIMM is just off of its poor fourth-quarter results, which first sent investors packing. The renewed confidence should be heavily questioned, and the stock should sell off in the next couple of trading days.

    Disclosure: No conflicts.

    MarketMatador.com

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