Bookkeeping: Addition to Research in Motion (RIMM)

I am continuing to slowly build a Research in Motion (RIMM) position on the weakness. It is now up to 1.65% of the fund. The risks are a few - #1 real OR perceived slowdown in corporate spending could hurt perception of the company - all it takes is 'a fear' of corporate slowdown in gadget spending and the stock can get whacked even if it is not reality (remember perception IS reality on Wall Street) and #2 valuation.

I like this company for the long run and it's move into the consumer space and especially international markets will be wonderful initiatives. But the stock has now gapped down below its 50 day moving average of $108.25 or so which generally does not bode well for the near term. Hence I am not rushing in. Recent lows were in the upper $90s and since I sold some of my position near $120 last week I am just buying back what I sold. Always a risk in buying a cult stock (i.e. chock full of retail investors) of the lemmings panicking and hence I tread carefully with a stock like Research in Motion.

If the stock regains its 50 day moving average (and the market strengthens) I'd continue to add to this position.

Long Research in Motion in fund; no personal position