(This is an excerpt from an article I published on Seeking Alpha. Click here to read the entire piece.)
Research In Motion (RIMM) has been trapped in a steep decline since hitting 9-month highs in February. The downward momentum finally came to a halt after the stock retested 52-week lows on May 16th.
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*Chart created using TeleChart
I earlier suggested that RIMM’s inability to get back into the market to buy back stock is a major negative given it appears this buying has provided a significant prop to prices over the period of the last two repurchase programs. At some point soon, I imagine the market may start to anticipate yet another repurchase program immediately after RIMM is able to get back into the market in July.
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Be careful out there!
(This is an excerpt from an article I published on Seeking Alpha. Click here to read the entire piece.)
Full disclosure: long RIMM shares, long RIMM put