Thursday, October 2, 2008

Robert Hsu and RIMM

On August 27th 2008 Mr. Hsu discovered a new buy for his $3.000/year paying readers. It was RIMM. Mr. Hsu wrote:

I think there are huge profits to come, so I want you to buy RIMM under $135. I'm targeting $160 in the next six to eight months, which would give us a nice 20% gain.

September 3

Performance: -8.7%

Buy below $135

September 10

Performance: -18.4%

Buy below $135

September 17

Performance: -27.5%

Buy below $135

September 24

Performance: -24.6%

Buy below $135

September 2

Performance: -47.8%

Sell RIMM, or more precisely, I want you to sell RIMM if you haven't done so already.

Note that at $62 RIMM has a PE ratio of around 20. At $135 it would be more than 40. Isn't it too risky?

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