In North America today, was the official news release of the Blackberry Storm. A sleek and sophisticated looking smart phone device, will clash in the global wireless markets against tough rival, Apple iPhone. The device will work both on GSM and CDMA networks, depending on the provider. It features 3.2 Mp camera, video recording, Haptics (a touch-response technology that lets you feel the screen and push down to make selections), horizontal and vertical screen flip, complete media features, streaming media. A very exciting new addition the the Blackberry family.
Unfortunately, the release could not have come at a worse time. With the global economy on a slowdown and the systematic failures of the United States financial markets, a massive client base of the Blackberry is drastically reduced. It is perceived that roughly 90% of the worlds major financial, banking and insurance communities trust their wireless communications to Blackberry. With the collapse of these commercial financial houses, we should see a massive reduction in RIM earnings in both handset sales, and enterprise contracts with large corporations. A confirmation of this decline is inherent in the -52% performance in the past 6 months.
Long term Put positions in the 50-40 strikes seem to be optimal.
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