After 90% Drop, RIMM Is Downgraded

The stock market opened much lower this morning. The big concern this week is the expected decision from the Supreme Court on President Obama’s healthcare reform law. According to the latest prices at Intrade, the futures market for real-world events, there’s a 78% chance the individual mandate will be declared unconstitutional.

I won’t even try to guess what the Supreme Court will do, but I will caution investors not expect Wall Street to celebrate news any decision before we know the details. The fallout will probably be very difficult to gauge.

There’s yet another EU summit scheduled for this week. I’m not hoping for much. The expectation for the can is that it will be kicked. How far? Further down the road. It’s just the same thing over and over again.

The other event I’m looking forward to this week is Thursday’s GDP report. The previous reports said that the economy expanded by 1.9% during the first three months of the year. Wall Street doesn’t expect much, but it will be interesting to see what the report says.

Research In Motion ($RIMM) was downgraded this morning by Morgan Stanley. The firm lowered their rating from Equal Weight to Underweight. Jeff Reeves notes that this moves comes after the stock has fallen from $144 to $10. Now they tell us.

As pathetic as that is, RIMM is still overpriced.

Posted by on June 25th, 2012 at 9:53 am


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