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You don’t need me to tell you how poorly the once-proud stocks of GNK and RIMM have acted over the past few years. Technically, they have been in well-defined downtrends, with bottom-pickers being smashed into oblivion the whole way down. The angle of descent has been steep, reinforcing the power of the downtrend in each case.
Psychology, the “gasp” factor has abated, as it has now become widely accepted and a foregone conclusion of how bearish the price action is in each of these firms. The reasons are fairly simple: RIMM is getting its lunch eaten in the smartphone market, and Genco and the rest of the shippers have been as weak as any other area of the market since 2008 with the tepid economic recovery.
Now that both stocks have frustrated enough bottom-callers to the point where they are not talked about much at all, the question you should probably be asking yourself is whether these firms are going out of business anytime soon. The market might know something that we don’t, but I think both firms will be around for a while. If that is the case, then a relevant question is how much bad news, of what is currently known and knowable, has been baked in the cake. Genco has gone from roughly $29 to $4 over the past twenty months, and RIMM from $88 to $21 in basically the same time period. Both of those haircuts are quite steep, even for laggards.
In other words, GNK and RIMM are so bad that they are probably good here.
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Was looking at $GNK today too, nice look.
You nailed $RIMM in the low 20s, would love to in this one a little lower.
I wouldn’t fuck Rimm with your 10 foot dick!
She is bad – that’s good.
On the other hand, won’t touch the RIMM, but I am watching GNK for the future.
For a forecast of where RIMM is headed, look no further than PALM. People are very particular about which smartphone to purchase. They love to get whatever is “in” at the time. Right now, the iPhone and Android are the “in” phones. Blackberries are has-been’s. No need to catch that falling knife.
By the way, Chess, I am loving the choice of pictures lately. I may have to frequent this blog more often with these pictures. 😀