Friday, April 2, 2010

Post Earnings Facts and Thoughts on Research in Motion (RIMM) ...

There is sanity on Wall Street, though at least 3 upgraded price targets on April 1st, one as high as $117. Yet here's a well known Wall Street firm POTC follows: 

*DJ (Dow Jones) Research In Motion Cut To Sell From Neutral By Goldman Sachs (GS)

Research In Motion Ltd. (RIMM, RIM.T) was cut to sell from neutral by Goldman's Simona Jankowski. Simona cut her price target from $73 to $65:
"its products will increasingly lose differentiation as the focus shifts from email, where RIM leads all competitors, to applications, where RIM lags both the iPhone from Apple Inc. (AAPL) and Android, an operating system of Google Inc. (GOOG). With its North American business already in decline, the broker doesn't expect international strength to be enough of an offset."
-By Steve Goldstein, 415-439-6400;

POTC predicts the stock begins closing below $70 shortly, and June expiration is many weeks away; hold the RIMM Puts and enjoy the technical control as share price erodes under the all important 200 day line. We are very satisfied shares broke our way, realizing the last 8 Wall Street firms either Upgraded or Initiated coverage with Buy ratings in the past several weeks:
Mar 26, '10 JP Morgan Upgraded to Overweight
Mar 25, '10 Rodman & Renshaw Initiated Mkt Perform
Mar 19, '10 Wunderlich Initiated Buy
Mar 8, '10 BMO Capital Markets Upgraded to Outperform
Feb 23, '10 Stifel Nicolaus Initiated Buy
Feb 12, '10, RBC Capital Mkts Upgraded to Outperform Top Pick
Feb 12, '10 Wedbush Morgan Initiated Outperform
Feb 1, '10 Standpoint Research Upgraded to Buy

We humbly ask you to tell a friend and family member about our efforts, perhaps only Jim Cramer's team works as smart and hard as POTC, you decide. Are we right all the time, of course not. 'Butt' Capitalist Pig Bob, our Chief Political Correspondent on Facebook, has sent us several positive comments from the pigsty et large, we thank you for them again. Lastly, apologies for butchering RIMM's Co-CEO "Balsillie's" name in the PFF ratio option trade alert, yet he butchered Q4 revenues as well as Q1 guidance in our professional opinion.

POTC appreciates and respects having you as a reader, subscriber, and trader. Our mission is to continue to cut through all the CNBC and Bloomberg talking head hype and educate you whether beginner or expert. We are very open to your general input as well as suggestions on stocks you'd like us to analyze.

A beautiful Spring Easter weekend to every Christian reader in the U.S. and all 90+ countries. Hope has sprung and purple is the symbolic color of the season. Celebrate the promise of eternal life, as many believe our lives involve more than mere physical existence and death. Faith, hope, and the American dream of free-market capitalism are powerful drivers our entire team shares. 

Sincerely, the entire Psychology of the Call team (POTC)

For a more in depth opinion on RIMM post earnings, please see the added commentary in the posting directly below.

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