I believe that RIMM, like APPL is a stock that is taking a hit because many investors feel that a recession is coming and want to get out of technology in order to spare any further loses. Many people still remember the crash of 2001 where tech went first and farthest. However, this is a different time and although the housing market is suffering, it is not a time of panic. Unemployment is still stagnant around our 5% norm and inflation has been steady around 2% (for the last 20 years in fact). These are usually key indicators for a recession. Although people fear a declining dollar, the dollar is declining in value compared to the euro but it might just be that the euro is strong and not necessarily that the dollar is weak. Tech has been hit because of fears that has been perpetuated by large financial institutions who (reasonably) have been taking a hit recently as well. It is in their interest to do so. Tech is strong as indicated by recent earnings (APPL, RIMM, & GOOG, and yes even CSCO) but expectations for next quarter have belittled (even though Christmas is around the corner). Buy now before earnings and ride the wave up to earnings in which case you may decide to sell before the earnings date anyways. Buy in anticipation of news, sell before the news is released. Unless you fear recession, in which case you should simply stop investing for the time being, buy these stocks now as they are at a good value.
$107.71 (11/12/07)
