According to analysis from Town Hall Investment Research analyst Jamie Townsend, Research in Motion (NASDAQ:RIMM) won't be able to hold onto the 4 percent in gains they have had since August, and he downgraded the company as a result.
Townsend addressed the bullishness associated with Playbook tablet for Research in Motion, but doesn't believe adaptation will be as robust as thought, citing that it doesn't run on the same operating system used by BlackBerry smartphones.
Consequently he sees more caution from potential customers than the market is taking into account at this time.
“We are hard pressed to support even a 10 times valuation when confronted with minimal revenue growth and negative earnings growth,” said Townsend.
Town Hall downgraded RIM from "Avoid" to "Sell," which closed Wednesday at $61.37, down $0.75, or 1.21 percent.
Thursday, December 9, 2010
Research in Motion (NASDAQ:RIMM) Will Give Back Recent Gains
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1 comment:
I highly suspect another "short" holder who is desperately trying to drive down a stock by the 16th.
The "shorts" on RIM are doing their darndest....
Looks like RIM will beat the street estimates, btw so ignore the "sell" advice out there until the report on the 16th
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