Seeking Alpha

Research In Motion (RIMM +3.2%) is bouncing a little today. The rally comes in spite of reports...

Research In Motion (RIMM +3.2%) is bouncing a little today. The rally comes in spite of reports carriers such as AT&T and Verizon are pressuring RIM to lower the BlackBerry Internet Service (BIS) fees it charges for its 78M subscribers. BIS accounts for over a third of RIM's revenue, and is a needed source of profit as hardware losses accelerate.
Comments (3)
  • smartoptiontrader
    , contributor
    Comments (24) | Send Message
     
    Lowering the BIS fees has huge negative impact on RIM not only because the BIS fees contribute ~33% to RIM's revenue, but also because the BIS has way much higher margin than RIM's troubled hardware business and thus contribute a lot more than 33% to RIM's margin for all its businesses.
    5 Jul 2012, 12:13 PM Reply Like
  • frankiethecat
    , contributor
    Comments (36) | Send Message
     
    shorts are starting to cover in case something is done or announced at or before the July 10th annual shareholder's meeting.

     

    however, it appears that with current management on meds that desparately need to be changed to a new prescription called "reality", nothing is going to be done except for alot of ranting at heins and his clique.

     

    Today's deat cat bounce is called a "short squeeze" which is what the markets have been doing the past few big rallies, nothing but huge manipulated short squeezes thanks to the HFT trades and algorithm bots that are helped along with the extension of TWIST, ZIRP and many central banks' TWITS that use printing of money to prop up stock/bond markets.
    5 Jul 2012, 12:21 PM Reply Like
  • smartoptiontrader
    , contributor
    Comments (24) | Send Message
     
    RIMM's Short Percent of Float is now about 15% and the Days To Cover (Short Interest Ratio) is about 4.4 days at the current average trading volume. That does not give all shorts enough time to get covered (at this moment only 2.5 trading days left prior to the July 10th annual shareholder's meeting), so one should expect the bounce to go higher before RIMM resumes the downward trend due to RIM's ever worsening business fundamentals.
    5 Jul 2012, 12:50 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|