Research In Motion (RIMM) reported no share repurchase activity in its latest earnings report. The amount spent on this program remains at $775M of the $1.2B total authorized. Perhaps it makes sense that RIMM has saved its powder given the stock has trended upward since last quarter’s repurchase activity.
Although RIMM provided guidance that remains above bullish analyst expectations, the stock dropped 4.6% in after-hours to close at $70.55 (it dropped as low as $66!). This puts RIMM right above the converged support of the 50 and 200-day moving averages (DMAs). For review, here is the chart I posted two days ago:
*Chart created using TeleChart:
Although the recent up-trend is now broken, I will add to my long position for a swing trade if this support holds for the day. A close below support (below $69) sets the stock up as a short.
Be careful out there!
Full disclosure: long RIMM (call spread)