It seems like the kind of time that the stock will get beaten down short term so you can go long at a discount. I love getting some free margin of safety on short-term fears. I'm hoping it drops under $100 or hits near term lows in the $90 range so I can load up. I think the future of mobile phones will be in the smart phones arena in the next few years.
But it was the spike in expenses and a decline in gross margins that had analysts on the company's conference call worried.
Gross margin for the quarter fell to 50.7% from 51.8%, the same quarter a year ago.
The company's selling, general and administrative expenses grew 22%, compared to expectations that pegged the rise at around 17% to 18%. That means the company spent about $10 million more than it had expected, pointed out Citigroup analyst Jim Suva.
RIM tried to allay concerns and suggested the increased spending is on marketing in anticipation of new product launches later this year.
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