Tuesday, April 27, 2010

Notable Calls Network (NCN): Research in Motion (NASDAQ:RIMM)

Some Notable Calls Network (NCN) members caught a fairly nice move in Research in Motion (NASDAQ:RIMM) yesterday.

- Around 10:50 AM ET a NCN member pinged me with a following Deutsche Bank sales desk call:

' RIMM- presenting at Capital Markets Day---some competitors last week had bullish calls about big new products coming at event-- we see nothing, think stock weakens - DBAB '

Calls like this one circle the trading desks frequently and sometimes offer trading opportunities. Notable Calls Network (NCN) usually picks them up pretty fast intraday.

The stock was already down 1pt+ since open & didn't really respond to the cautious/negative call from Deutsche. It even squeezed marginally higher over the next 5 mins or so. It seemed as though the lack of new product announcements was already priced in...or some smart market participants were actually starting to position themselves +vely ahead of an announcement.

- Around 10:55 AM ET a smart hedgie (new addition to NCN) that I follows the space closely pinged me back with the following:

RIMM feedback - 'tricky game, i am looking for a big announcement after 1pm on a new OS and/or browser. Don't think they update financials but prob good enuf for a rally back the moving avg '

Knowing he might be on to something interesting there, I quickly distributed the comments to other NCN members.

- The stock treaded water for the next 2hrs+, trading down & bouncing in 70c a range. Soon after 2:00 PM ET it suddenly took off with huge volume.


Two headlines crossed.



It was exactly the 'big announcement' the hedgie contact had been talking about. The OS 6.0 was showed briefly in video - it looked significantly better than current UI and Browser and will launch with new touchscreen in August/Sept.

The stock went up 4pts+ and then some the next morning.

I'm not saying it was an outright call to buy the stock ahead of the announcement but it did explain why the stock didn't react to the Deutsche call & highlighted a possible +ve catalyst too look out for. And that's a big thing, at least in my opinion.

This is how Notable Calls Network (NCN) works - sharing the flow. We catch them every day.

Want to be part of NCN?

It's easy. Just shoot me a brief email that includes a short description of yourself and your AOL nickname.

Please do note that contacts via IM are limited to people with:

- 3+ years of trading experience

- Access to quality research/analyst commentary

- Ability to generate and share (intraday) trading calls

I will not accept contacts from purely technically oriented traders, penny stock fans or people who have less than 3 years of experience in the field.


Ryan said...
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