Story Stock Of The Day: RIMM Down Big On Big Volume

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Blackberry maker Research In Motion (RIMM) is getting crushed today on big volume after reporting fiscal 2nd quarter earnings after the close last night.  Revenue was a little light as was their revenue forecast for the 3rd quarter.  Average selling price for the 3rd quarter is expected to drop to $320 and this is getting some ink too.  The numbers were still very good and this company is a cash machine in a secular growth market.  But the stock might have gotten a little too hot to handle.

Volume is very big at 78 million shares already out of 568 million total oustanding – 14% of all shares.  This suggests a lot of fast money is exiting the stock here.


Disclosure: Top Gun is short shares of Research In Motion (RIMM).

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