By: Scott Redler of T3Live
Research in Motion (RIMM) was a dud in 2010, at one point losing more than 40% of its value before recovering. The bounce back has been strong, though, for RIMM after two straight quarters of strong earnings and an innovative new product in the tablet space with the playbook. The Blackberry maker is still written off as a dinosaur in the cell-phone business, but it has a legion of loyal customers that wouldn’t dare give up their Blackberries.
Now that some of the tech leaders, and the market, are starting to look extended, I feel its a good time to take a look at a couple laggard-type plays. A small reverse head and shoulders bottoming pattern is currently being completed with the right shoulder in the $62.50 area. I am in tier one long here in anticipation of the break of the neckline, and will look to add if it can break above $64 and hold. The first, cash flow target on the trade would be $67.50-$68.50, then ultimately I feel it can get back to 52-week highs around $75. My stop on the trade would be $61.50.
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