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