Waterloo, Ontario's Research in Motion shares traded to a new all time price high Monday, after announcing the new "Bold" Blackberry. Research in Motion's shares are among the first leading NASDAQ shares to reclaim new high ground after the first quarter's general market correction.
The company continues to report quarter after quarter of spectacular EPS growth. Estimates for the coming two quarters are 118% and 78%. Sales are estimated to grow at 110% for the current quarter and 69% for the current year. EPS and sales estimates have been significantly increased over the past weeks. The company has almost no debt and a return on equity of 40.33%
RIMM's shares traded to new price highs on stronger than average volume on Monday. This action reveals RIMM shares completing a 6 month O'Neil Cup With Handle. The Cup With Handle was identified and coined by William J. O'Neil, founder and chairman of Investor's Business Daily, in his important investing book, "How to Make Money in Stocks."
The current market environment is rewarding leading growth names. Other glamour names trading at new highs include Sohu .com ( SOHU ) and MasterCard (MA). RIMM shares are among the fundamentally strongest of all publicly traded shares. Shares of this strength trading at new price highs on strong volume have the potential to move much higher.
I have added RIMM to my Glam 5 Index and I may buy RIMM personally over the coming days. I will not buy the shares above $145. I will use stop losses in the 5-8% range to protect myself from downside risk. As I have written before, things can change quickly in the equity market, even for the very best companies, like RIMM .
Disclosure: I intend to buy RIMM personally in the near future.
$141.25999 (05/13/08)
