Research in Motion (RIMM) Working on Filling the Gap of April 2009

Stock gaps need not fill, and many times when they do take quarters if not years to go back to “fill in the hole” – on the other hand gaps on indexes more or less always fill (with a few historical exceptions) and do so usually in short order (months).

Research in Motion (RIMM) reported an “ok” quarter but the stock was weak ahead of the figure (below all key moving figures) and is being sand blasted today. It has broken 2009 lows and now working on filling an earnings gap “up” from April 2009. Despite the competitive threats from Apple (AAPL) and Android, one would think with $5 of earnings power “value” managers would finally begin sniffing around this former high grower.

The problem is, that was the thought process with Nokia (NOK) as well – that did not work out too well.

Let me tell you – not -5 years ago Nokia was the clear king of the hill in mobile; truly a historic fall from grace in what was once the safest amongst ‘tech’ stocks. (Nokia is pushing towards March 2009 lows! Double bottom?)

I am actually quite disappointed with the technology push at RIMM; they seem to have sat on their laurels – it is one thing to be face planted via Apple; they do that to everyone. But to have Google come up with Android and not even match that… quite unacceptable.

Disclosure: No positions

About Mark Hanna 542 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

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