RIMM Downgraded, Shares Slide

Research in Motion Ltd.'s (RIMM) roller coaster week continued last Friday, after the company's shares fell almost 5% in early morning trading. Credit Suisse downgraded the stock late on Thursday afternoon from "neutral" to "underperform" on expectations that smartphone volumes will slow dramatically.

Credit Suisse also cut it price target on RIM shares, from C$45 to C$37.

On Wednesday, Research in Motion shares dropped 15% after the company said fourth-quarter profit would likely come in at the low end of its expectations. The stock rebounded 5% on Thursday.

Comments

[jenny:]

RIMM always has and always will be a volatile stock. With RIMM its more about timing that anything, when to get out... One day investors are optimistic about RIMM, they next they are downgraded and their is a sell-off frenzy (www.predictwallstreet....). I think you got to be in RIMM for the long run to get a feel for its waves. RIMM is definitely no where it used to be and it will most likely be awhile before it gets back there, if it ever does.

Feb 18 02:21 PM

[well:]

something ain't right with this stock....i've been investing for long time and i never seen this unless company was going out of business. for something to fall 20.00 from 60.00 to 40.00,,,for no reason just because some analyst made a 2030 prediction and a report predicting slow sales,,, something aint right, other companies are missing the boat but i dont see the same results. this is stock for shorts... the wave has always been the same i doubt it will ever change

Feb 18 06:35 PM

[neutrino23:]

Maybe because it is a one trick pony relying on just one business. Right now businesses are laying people off, not hiring. What motivation do they have to buy new phones? More likely they are canceling contracts. My guess is they will suffer till the employment picture changes.

Feb 20 03:54 AM

[Hayweed:]

Should change the company to Research in Freefall.

Feb 20 01:13 PM