Sharks Circling In Research In Motion (RIMM)
The activity in shares of Research in Motion (NASDAQ: RIMM) is starting to suggest that the stock's decline may just be getting started. It looks like some big sellers are targeting RIMM as competition continues to threaten the company from all sides. During today's trading session, RIMM has fallen another 3.39% to $48.75. Year-to-date, the stock has lost more than 27%.
It is hard to identify a catalyst that could reverse the slide in the share price now that the company has released its new Blackberry Torch device. In fact, the release of the smartphone has coincided with an acceleration in the stock's decline, which is very worrisome.
The most likely thing that will arrest the fall is RIMM's valuation, but the stock already appears quite cheap at just 8.10 times forward earnings estimates, yet it continues to get hammered. Keep an eye on this name, as the aggressive selling may be foreshadowing a PALM-like spiral in the near future.
