Hello all welcome to the Super Two Week edition (sorry Steve) of Lock on Stocks. This week we will be focusing on what has happened in the world of mobile stocks for the past two weeks. Last week we here in the great state of Minnesota were blasted with a decent sized snow storm leaving me without internet access until Monday, therefore I didnâ€™t get a chance to get the article up in time.
I apologize for that. Today Iâ€™m writing this super-sized edition while getting ready to head to the Boys High School Hockey State Tournament just down the road from my place. Thatâ€™s right, I am playing hooky to watch hockey. If youâ€™re unfamiliar with Minnesota High School hockey, which Iâ€™m sure there are probably a few of you who are, think Texas High School football and multiply it by 10. Itâ€™s insane around here.
I could go on and on about the â€œState of Hockeyâ€ however I wonâ€™t, after all, this article is about stocks. Now letâ€™s get on with the madness.
Wow, what a past couple of weeks for RIM! Where should we start? Balsillie steps down as RIM Chairman! Pictures of the 8300 surface! Steve has brunch with the man! How did all of these affect the market?
Well RIMâ€™s stock scandal didnâ€™t help things much at all, along with the outing of Balsillie we saw RIM drop over $10 a share this past week and a half down to $136 from an almost 52 week high of $147 on February 27th. One week can truly make a load of difference and itâ€™s scary to see the difference that these petty little stock scandals can create.
RIM had rebounded nicely from the huge DOW drop last week when it fell nearly 500 points! Most markets are still feeling the affects.
Analysts are stating that RIMâ€™s financial report restatements could cut their profit by nearly $250 million dollars. This does seem to be caused by internal documenting errors and not by dirty book keeping. Yesterday Ontario regulators extended a ban on executives of RIM prohibiting them from trading and also gave them a June 1st deadline to restate quarterly results. 66 total RIM employees are currently banned from trading.
This week the S&P has decided to keep Research In Motion on their sell, sell, sell list. Other mobile companies currently making that list: Motorola (go figure) and US Cellular.
However good news for RIM: RTTNews is reporting that Research In Motion is heading into positive territory. The stock has been climbing back into positive territory, recovering from the week of hell that it has endured.
There was also a very quick $2 jump on Monday, roughly around the same time that pictures of the new 8300 surfaced on the web. Coincidence? Most definitely not. Weâ€™ve all seen how these leaks can affect the RIMâ€™s stock, and if you donâ€™t remember â€“ take a look back around the time the Pearl pictures and info were leaked.