Bank Industry Woes Spill Over to RIM

BlackBerry maker’s stock drops after Cisco's negative projections
By Jim O'Neill,  Newser User
Posted Nov 9, 2007 10:59 AM CST
A Blackberry displays the Microsoft homepage in a downtown Toronto office, Thursday, Aug. 30, 2007. (AP Photo/J.P. Moczulski, The Canadian Press)   (Associated Press)
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(Newser) – Research in Motion’s share price run-up ended yesterday on worries about softness in the banking industry, after Cisco Systems reported declining orders for its products, Reuters reports. The BlackBerry maker’s stock was up 140% since June, with analyst raising price targets 30-50% after its Oct. 5 quarterlies. RIM closed off 6.4%, $8.55, on Nasdaq at $122.48.

Some analysts refused to abandon RIM, saying banking represented less than 15% of its base and that the drop was a result of profit taking, not a weak outlook. "It just goes to show you what investors will do when they get a little bit panicked," one analyst said. RIM led a broad decline among Canadian tech stocks yesterday. The stock was down another 7.5% this morning to $115.11  at 11:39 EST.