Do Not Gloat!
It's always important to stay level and calm as an investor, unlike the image of the frenzied pit-traders that we can all visualize. However, anyone who has made money in the market knows that big wins are an aphrodisiac and the thought "this is almost as good as the best thing in the world" comes to mind when the big score happens. Today Geller Capital and its clients are rewarded significantly for holding RIMM. In the afterhours market the shares are up about $26 above the $2 gain during normal trading after posting blowout numbers. Readers of my blog will recall that just a few days ago I noted the probability of this happening when the stock was sliding towards $161. Now, $192. Earnings, Revenues, and Subscriptions were reported better than expected. Guidance for the August quarter was raised as well. I didn't even consider a split but we'll take that 3:1 that was also announced. (Big splits are another thing to worry about as it makes it easy for investors to take some off the table and that softens an advance. Frankly I will consider doing the same on this spike but think that maybe a short squeeze gives us more tomorrow.)
Your portfolio manager is definitely worth his salt when he (i.e., me!) can read the signals on the street and look beyond the daily grind. It became apparent to me that RIMM is in transition from a mostly business-use product to a consumer products company. The market is clearly much greater for the latter. Concurrently, despite all the pre-iphone hype and the fast run in AAPL from 90 to 127, the market will take a serious look at that stock tomorrow. Players will realize that the demand for a communication device that combines the basic handheld features with reliable on-the-go email is very desirable. This news officially moves email off the desktop and into the handheld. Wrapping it up with a phone, ipod, photo album, etc. may be too much for consumers to avoid. Palm might be a better device but think betamax/vhs and say goodbye to Palm, Nokia, etc.
Investing in these pricey hi-tech cos is tricky. RIMM and AAPl could give it all up tomorrow on some unexpectedly bad news but my mentor taught me that big market winners are hard to buy into and so easy to sell. They're a fight to hold onto yet one must remain flexible and adjust to shifting winds. This news should energize the tech sector tomorrow as well as the whole market. The June correction is halfway over so hang in there! Stay tuned.
ps - Welcome Technorati users!
Your portfolio manager is definitely worth his salt when he (i.e., me!) can read the signals on the street and look beyond the daily grind. It became apparent to me that RIMM is in transition from a mostly business-use product to a consumer products company. The market is clearly much greater for the latter. Concurrently, despite all the pre-iphone hype and the fast run in AAPL from 90 to 127, the market will take a serious look at that stock tomorrow. Players will realize that the demand for a communication device that combines the basic handheld features with reliable on-the-go email is very desirable. This news officially moves email off the desktop and into the handheld. Wrapping it up with a phone, ipod, photo album, etc. may be too much for consumers to avoid. Palm might be a better device but think betamax/vhs and say goodbye to Palm, Nokia, etc.
Investing in these pricey hi-tech cos is tricky. RIMM and AAPl could give it all up tomorrow on some unexpectedly bad news but my mentor taught me that big market winners are hard to buy into and so easy to sell. They're a fight to hold onto yet one must remain flexible and adjust to shifting winds. This news should energize the tech sector tomorrow as well as the whole market. The June correction is halfway over so hang in there! Stay tuned.
ps - Welcome Technorati users!
posted by David Geller at 5:26 PM
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