Research In Motion (RIMM) : A sign of weakness

Wall Street Journal just reported that RIMM is shopping for mobile ad network to add to its business core.

If there’s one thing that is clear on this front, RIMM is losing ground for their mobile phone market share.

Acquiring a mobile ad network will at most keep them ‘alive’ in the game and play second fiddle to Apple and Google.

Unless, the acquisition is a game changer, I have difficulty looking at how this translate to a competitive advantage for RIMM.

In a separate news on Bloomberg, more hints of the ‘BlackPad’ is mentioned with their new subsidiary QNX Software being tasked to develop email applications for the BlackPad.

At this point, it is difficult to determine the selling point of the ‘BlackPad’.

I recall, at one time, Nokia acquired Symbian and after years of pushing it as the preferred mobile platform, it finally loses ground to Android.

Will QNX goes the way of Symbian? Perhaps, RIMM will become a niche player, with revenues coming from industry specified products rather than the mass market. In those cases, revenue will be stable and the high growth era of RIMM may be over.

For now, RIMM chart is still bearish with no signs that it is on an uptrend.

As we can see, the price level is below the kumo, the Tenkan sen, and the Kijun sen.

Yesterday’s price action was weak, as it rises on speculations that they will settle with India’s request and it ends closer to the lower trading range.

By iam802

Trend trading with Ichimoku