RIM shares drop again; technicals weak
TORONTO (Reuters) - Research In Motion's share price on Monday dropped to less than $10 on Nasdaq, a breach that technical analysts say could spur further declines, after an analyst warned that the BlackBerry maker's sales were dismal last month.
The stock, which is trading at its lowest since 2003, has fallen nearly 15 percent in the past week alone.
After an announcement last week that RIM expects to post a quarterly operating loss, sentiment is extremely bearish on the stock, said Elvis Picardo, a strategist at Global Securities in Vancouver.
To make matters worse, Pacific Crest analyst James Faucette said in a note to clients on Sunday that RIM sales deteriorated further in May.
On Monday, RIM's shares fell 5.8 percent to $9.66 on the Nasdaq, while its Toronto-listed shares closed on Monday 6.1 percent lower at C$10.03.
"You would have expected the C$10 level to have provided pretty strong support, but if it cracks through that it's really hard to say where this decline will stop," said Picardo.
RIM, which almost invented the concept of on-the-go email with its first BlackBerry device in 1999, has seen its once dominant position fade in the face of competition from Apple Inc's iPhone and devices from the likes of Samsung Electronics Co using Google Inc's Android software.
"Technically it's not looking good at all," said Don Vialoux a research analyst at Horizon Investment Management. "It trades well below its 20, 50 and 200-day moving averages and has given no indication of trying to bottom as of yet."
RIM's market capitalization, which peaked at $84 billion in 2008, has now fallen to about roughly $5 billion. The company continues to cede market share to rivals and some analysts expect RIM to begin to lose subscribers this year. Continued...