Investors have been punishing RIMM lately and the stock has hit levels not seen since December 2003. So has the Blackberry maker’s stock finally reached bottom or are we going to see more downside momentum? Everyone has been dumping RIMM shares for the obvious reasons that everyone is buying iPhone and Android devices and as a consequence RIMM has been consistently losing market share to Apple and the Android device manufacturers.
The problem with RIMM is that its profit margins are dwindling and the downward trend has accelerated in recent quarters. Its EPS have dropped below 2008 levels which is not a good sign.
One thing to note here though is that although RIMM is losing market share it finds itself in a sector that is expanding. So if some miracle innovation or creative insight miraculously takes place, buyers may suddenly fall in love with the stock. Only time will tell if RIMM is a risky investment for the bargain hunters.
RIMM 15 year weekly chart
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