In Focus: RIMM, CLWR, LNKD

My workload at school has dropped drastically, but finals are a week away. However, I'd like to comment on a few stocks before going back to my daily institutionalized education.

Clearwire is oversold. Don't let the action that has happened technically fool. Here is a string of events that pushed the stock to where it is now. An individual with a substantial stake in the company sold off his shares due to refinancing. Intel, who owned 10% of their shares roughly, sold off their shares for an undisclosed reason. A lackluster earnings report brought down sentiment. It's hit a new low of $4 and is beginning to recover. I disclosed that $5.4 was a nice entry point. However, I forgot to leave insight of support levels. $5.25 was where  I would of recommended to cut your losses, due to the the bad news. As my experience as a day trader, I know that once a stock hits under a dollar support level, it is expected that a free fall is eminent. This was the case. Right now, i am still bullish long term due to take out speculation, their valuation, asset portfolio, and post positive post-consolidation sentiment. I feel like the value buyers already made their move and the lowest it will drop to is $4.25 any time soon.

Research in Motion. Since $50, it was an obvious seller. The new resistance line is $45, and the new support is $40. Right now is not a good time to jump back because it is at the higher end of the spectrum. I expect this to fall to $43 in the next 2 days. The market is responding correctly when Blackberry Playbooks were recalled due to defects. The company reports in less than a month, so value buyers are sitting this out for now. Expect June to really affect this stock because of macroeconomic factors. There is more upside risk than downside. This stock continually gets bashed by media. Compare RIMM to AAPL, NOK, and MMI. It doesn't look very appealing.

The story of the day is the public offering of Linked In (LKND.) Stay away for now. This is manipulated. Expect this to drop at least 25% when volume subsides. If it stays above $80, I will begin to speculate a social media bubble forming.

UPDATE: I got into the LNKD trade once the $100 mark was breached, and exited at $120. Many are looking to get back in at $100 and will be surprised that it will decline. However, valuation of P/E is over 500. That's nosebleed heights not to deal with as a long term trader.