Monday, November 2, 2009
RIMM is getting sold off today Citi analysts downgraded Palm and BlackBerry maker Research In Motion to sell and upgraded Motorola to a buy. The move comes just five days before Motorola's Droid phone starts selling at the nation's No. 1 wireless shop, Verizon. The slender, touchscreen Droid is Verizon's best attempt yet to counter Apple's popular iPhone at rival AT&T. I noted that the Smart phone competition would heat up in a previous post ~link~
We can still see further downside selling in RIMM, Citi has a downside PT of $54...I see possibly $48. But as consensus earning estimates, currently (may change) I'd say the downside risks versus the upside potential warrant holding or buying (accumulating shares). Consider buying puts or selling calls as part of your hedging strategy.
*click chart to expand image