RIMM-ing in the New Year!
I am the man!
Adam Brodsky is writing today's trading diary
As we approach the last hour of trading it seems as if the big story of the day is Research In Motion (RIMM: NASD), which is trading up some 47% off of good earnings news. In addition the stock has traded 41 million shares which is an all time high for the company. Clearly, ownership is changing hands and people are both exiting and entering full positions in the stock. Has the ownership changed more into momentum traders? Either way, why is this the big story in my mind?
First of all I think it personifies peoples' appetites for stock still exist. Yes, the company has (or maybe I should say HAD after today) a high short interest ratio but it is trading like someone is taking it over! Quite clearly people still want to own names and have no problem paying up $20 for a hot tech name. Will this be the theme throughout this coming earnings period?
The market is trading towards its lows for the day and RIMM is not giving up any ground. This is just another example of how news, both good and bad are being gobbled up by investors, even as we approach the end of the year. This is classic bull market action and if this action continues into 2004, we could see another banner year.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at email@example.com.
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