Research In Motion ($RIMM): Strong support at $35


RIMM has break its support at $42.72 and is now poised to head towards the lows in 2008 (around $35).

This is a fairly strong support as it was the lows of 2008 (during the financial crisis). It was tested twice and with it a ‘W’ pattern was formed and it rebounced off the levels.

So, what has changed since then?

1. RIMM is now lagging behind in the smartphone market; playing catchup to Apple’s iPhone (or iOS) and Google’s Android.

2. New competitors includes Nokia (with its partnership with MSFT) and HPQ with its webOS (formerly Palm).

3. Matured and slowing growth for its BlackBerry server.

I expect $35 to be supported first. Whether it will continue to hold will depend on its execution for its Playbook and other new smartphone devices based on the new platform (QNX).

Unfortunately, market demand is not with RIMM on the above. Apple’s iPhone commands a huge following, has a great established ‘App Store’ and the newly iCloud service will continue to lock in users and create demand from the younger generation as well (through music, videos and other digital consumption).


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.


Research in Motion Ltd (RIMM) : RIMM continues its downward move

After its earnings, RIMM gap down and yesterday, it continue its downward move.

From the chart, RIMM reminds me of Nokia (NOK)

When Nokia miss its earnings, it gap down from $14 to $12 and steadily goes down to $8.

Having said that, if you look at the article from BusinessInsider on RIMM roadmap, do you see anything that excites you?

Personally, I do not find anything exciting for RIMM for the year ahead.

The only information that I am waiting is on their plans for the acquisition of QNX.