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September 27, 2005

RIMM's number has come up short, Tues., Sept. 27, 2005, 6:27 PM

In the next few minutes, ROBTV will archive video of the Lang-O'Leary show from 5 to 6 pm ET today. I hope you click on the video and fast forward to late in the show (the last 15 minutes or so) to catch Kevin O'Leary do a number on RIMM. Kevin is an astute trader and he's shorting it.

Here is the link (when available) to SqueezePlay with Amanda Lang and Kevin O'Leary.

Here is the Weekly data chart for RIMM:

If you check the Daily and Monthly charts for RIMM you will also see RSI indicator values in the 40s and 50s, like the Weekly. So clue number one is that Kevin is taking a lot of risk. I like to short only after a stock has been over-hyped and the RSI values have been up in the 80-100 range, and have fallen to the 70 level.

Kevin, however, is recommending a short with a two-year horizon, where if he is wrong, like he was a year or two ago on RIMM, he'll short more of it. You see, Kevin has the personal capital to lose, if he does.

And it appears to me that he is taking a riskier than normal time to go short RIMM. If the broad market does happen to sink here, then Kevin is going to be right. Of course, if the company reports tomorrow a good earnings report and guidance, and if the Nasdaq stocks also happen to move higher, suffice it to say that RIMM is going higher.

RIMM, like TASR, used to be on the Cara Global Best 100 Companies list based on operating performance, financial strength and the like. Times change. So, like Kevin, I now have my doubts about RIMM. Still, when it comes to shorting RIMM, this happens to be timing that puts too much of the risk on my end, for my liking.

Kevin is a good guy. I'd like to see him be right 10 out of 10, but it's not going to happen. I point out this item to you because the interview by Amanda Lang is excellent " she personifies the outstanding quality of ROBTV " and Kevin explains what it is to short a stock, and why and how he did it with RIMM (hedged against MOT).

This is informative and educational TV at its best. And that's the point.

Posted by Posted by Bill Cara on September 27, 2005 06:27:38 PM | Category: 45 Info Technology