Investors bet against RIM

RIM’s short interest has hit a record high, increasing to 4.2% of shares outstanding on August 24, finds research firm Markit. This is a sign investors are anticipating disappointing earnings as they continue to wait for a new lineup of BlackBerry smartphones, says Hugo Miller of Bloomberg Businessweek. Read: RIM chair defends leadership Investors taking […]

By Staff | September 4, 2012 | Last updated on September 4, 2012

1 min read

RIM’s short interest has hit a record high, increasing to 4.2% of shares outstanding on August 24, finds research firm Markit.

This is a sign investors are anticipating disappointing earnings as they continue to wait for a new lineup of BlackBerry smartphones, says Hugo Miller of Bloomberg Businessweek.

Read: RIM chair defends leadership

Investors taking short positions bet against a stock by borrowing shares and selling them. They profit by repaying the borrowed shares at a lower price.

Read: Nothing wrong with RIM

RIM shares have declined 54% this year. Today, at 1:30pm, RIM fell 1.21% to US$6.61.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.

Staff

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