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RIM (Research In Motion Ltd.) was downgraded to hold at Cannacord Adams and its target ... Smartphone News forum

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    blackninja's Avatar
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    RIM downgraded to HOLD on possibility of an approaching US recession

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    RIM (Research In Motion Ltd.) was downgraded to hold at Cannacord Adams and its target price lowered due to the strong possibility of an approaching recession in the US. Though RIM is a Canadian based company, their exposure to the US market makes them a potential target to feel the pressures of a weakening US economy. Despite their exceeding Analysts' expectations in the last quarterly report, Analyst Peter Misek has become "increasingly nervous" as it is unclear at this time if the US will indeed have a recession and to what extent it will affect consumer spending.

    Target price was lowered from $145 to $110. This news, along with the bearish climate on Wall Street, brought the stock down 6.91% for a days loss of $6.96 per share and ended the week at $93.70. During the trading session, prices hit as low as $92.26 a share.

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    Anyone holding a bullish position in RIM, I hope you took some profit off the top before the year ended. Seems the market has some rocky times ahead.

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    Re: RIM downgraded to HOLD on possibility of an approaching US recession

    this is going to be interesting year on the market.. gotta brace for it now

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    Re: RIM downgraded to HOLD on possibility of an approaching US recession

    Yeah but I'm holding on to my RIMM shares. The market will turn and now is the time to get in.
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    Re: RIM downgraded to HOLD on possibility of an approaching US recession

    Quote Originally Posted by jrockett View Post
    Yeah but I'm holding on to my RIMM shares. The market will turn and now is the time to get in.
    I have a wee bit less faith as to how quickly it will turn. It is a heavily overweighted stock with way too high of a P/E ratio. I think there's still quite a fair amount of room for the bears to bring it down before I'd jump in and own shares directly and go long. Today was a key moment as it broke below its $95 support, but nonetheless I have a Feb. $105 Call option purchased. With swings of $10 dollars to up and down side and the Fed Chair's (close to guarantee) of a strong rate cut, I think there's still some fight left in the market (and the beaten down RIMM), but I don't believe it can sustain any upward trend at the moment. The 100 point move yesterday shows the market wants to buy and has the money to, but is fearful of getting burned and going broke. With the BoA buyout of Countrywide and talks of foreign investors coming in to buy up Citigroup, I think its anyone's game at this point, but nonetheless, I'd still be selling off a good part of it on a high day and moving to a more defensive sector like precious metals, health care and any oil drilling related companies.

    I just had to turn my stuffed bull away from looking at me. Doug was staring at me with those judging eyes.. and a look of some disgust for my lack of total, unbending faith. =0(

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    Re: RIM downgraded to HOLD on possibility of an approaching US recession

    I'm hanging on to my RIM stock. My take is a bit more positive as I have followed & studied the market for many years, during which I have created & retained a full history for future reference.

    While I remain very open minded & embrace change, I also feel that one can become overly concerned based on just one report, or analyists opinion. Currently we are experiencing more activity than we otherwise would simply because of the influence of the news media & it's negative embellishment of current trends.

    Taking a few steps back & looking at the big picture as well as historical data, I feel as though if we enter into a recession it will be short lived.

    That however is simply my position, you mileage may vary.

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    Re: RIM downgraded to HOLD on possibility of an approaching US recession

    ~via BB (wap.pinstack.com)~ I feel as far the business side it really shouldn't be drastically effected. As for as the standard consumer market is yes.

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    Re: RIM downgraded to HOLD on possibility of an approaching US recession

    I agree blackninja, the only reason I'm holding is I bought RIMM right after the split and got in low and hope to ride it out. It is definitely time to check out health care.

    *hits his Cramer button BUY BUY BUY!
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