Markets are doing what comes naturally.....prove skeptics wrong.... again & again.....
Today's rally was on heavy volume in all indices..a sign that buying is gaining momentum.....
There were many new 52 wk highs 11 on NYSE & 26 on Nasdaq.....so Nasdaq new high list is leading other indices by 2.36 to 1...a great stat to stay focused.....
AH RIMM beat EPS consensus by 6 cents 90 cents vs 84 cents expected & higher revenue also....guidance was way stronger than consensus predicting 11 cents better EPS for Q1 which ends in May... 93 cents vs consensus of 82 cents....margins are being guided higher than consensus 43% to 44%....revenue guiding higher also....
RIMM ER is very impressive as 70% of new subscribers are coming from non-enterprise category...popularly known as consumers/retail customers...so wall street/banking purchasers are not making a difference in EPS growth as championed by many highly paid analysts..notably Credit Suisse & J.P.Morgan who had $37 & $40 targets and sell rating on RIMM....I hope their short position will get them bonus ????
RIMM AH last bid is $60.40 UP $14.86 on the day......
AH Futures are Green...so another higher open !!!!
G20 meeting saw real progress on stimulating world economy & helping struggling countries with assistance...this meeting was a "turning point" in kick starting world trade...no protectionism as agreed !!!!!
World is seeing Fundamental shift in economic picture with China showing first improvement in their PMI (purchasing managers index) in a long time.....
Many investors/traders will have tough time accepting this fundamental shift.....but that is how it goes @ early stage...
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Saleem,
CS & JPM were the shorts covering like crazy on RIMM yesterday. :)
The action on RIMM tells me that this spiking will happen again and again during the coming months as investors jump back in not wanting to be left behind and shorts cover.
Best Regards
Hi Standards,
There were 7 sell rating on RIMM..all of them have been very generous today by going from Sell to Neutral ..still insisting that margin will be under pressure beyond Q1....before it was suppose to be under pressure for Q4...
Saleem
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