RIMM’s Downward Momentum Finally Slows As Earnings Approach

(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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RIMM's downward momentum finally slows. Can it hold on until earnings June 16th?
RIMM's downward momentum finally slows. Can it hold on until earnings June 16th?

*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

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