By David Berman
The rally by Research In Motion Ltd. (RIMM) earlier in the day has evaporated, even as the broader market claws back some of its earlier losses. RIM shares had surged about 10 per cent in early trading, with Reuters reporting that the BlackBerry maker had hired an investment bank to help it explore strategic options.
This rumour follows last week’s chatter that a well-heeled investor was snapping up the stock in a prelude to demanding big changes at RIM. Carl Icahn’s name was floating around as the most likely investor to move in on the company, given his track record at Motorola Inc.
Now, though, the rally has ended: RIM shares were down more than 3 per cent in afternoon trading, taking the stock to a new low. Perhaps lots of rumours and little actual fact has begun to weigh on investors.
“When you start hearing things being floated on a regular basis, that’s unsubstantiated, I get a little more concerned that it’s just somebody who’s long this thing and is trying desperately to pump it up,” a source told Reuters.
Of course, the surge-and-decline also comes on a day when Apple Inc.