brk,
I've been thinking about you, and meaning to ask you if you're still short RIMM. Wish I was!
RIMM just signed a licensing agreement with QCOM, but no matter:
askresearch.com
Broke the H&S neckline again, and has resumed its old losing ways.
Congratulations. Sometimes guts pays off, as it is doing here.
Personally, I'd keep a trailing stop, because I think the chance of a short-term bottom here is increasing. And RIMM can always be re-shorted, and will probably present many opportunities to do so. Shorts are more profitable if you short, cover, reshort, cover, reshort, and I think it's almost necessary if you have a long-term bearish view of a stock because of the "reverse leverage" with long-term shorts. The only other possibility is long-term puts, which would be a good play I think.
Another short I'm looking at is ARBA, which hit a 52 week low today, but is extremely oversold at the moment. I'll look to short on any strength. ARBA has broken a long-term trendline, and this together with the moving averages have proven to be stiff overhead resistance, at a time when ARBA's relative strength has declined to a low for the year. Hoping for a relief rally here, and I'll short as it tests overhead, where it will very likely fail.
askresearch.com
But, here's to RIMM's headlong push towards a double-digit P/E. Sub-30 P/E is likely, eventually, IMHO.
Besides, all pigs must die!
WS |
