Monday, February 26, 2007

RIMM Breaks Out



Rimm showed relative strength today while the rest of the market sold off. RBC upgraded RIMM to Outperform from Sector Perform and raised their target to $180 from $145 saying their prior Sector Perform rating was based on 1) catalysts priced in; 2) 'headline risk' from competitive developments; 3) business model shifts (hardware mix, margins) moderating valuation. The firm now forecast new upside, based on: 1) vigorous momentum from RIMM's product cycle; 2) lower impact of changing margin/mix to valuation; and 3) stronger momentum mitigating competitive concerns.

RIMM broke out to new highs today on the heaviest volume seen for the month. The next upside target I have for RIMM is 175 which is based on doubling the size of the 3 month trading range this stock just broke out from.

5 comments:

acceltrader said...

Hmmm...looks alot like SNDK before it cracked. (2 year) Anybody agree?

Also, volume light on the runup...

JWU said...

hey kevin,
this is johns from thebulltrader.com

just wanted to thank you for putting up our link on your blogroll.

i like your site, and i have added you to our blogroll as well.

take care!

Kevin said...

Thanks JWU

Howard Lindzon said...

monster

Cal said...

I bought those $135 puts on Monday just somehow hinting to the fact that the upgrade was just pure Froth as my favorite short seller at http://potrix.com/ryan, would say. Sure enough, I wasn't betting on this market callapse but those Rimm puts doubled when I sold, then went on to triple. What a ride..

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