BBRY Appears Headed for a 33% Plunge

Research In Motion (BBRY) — This Canada-based smartphone maker is having difficulty competing in the wireless data services market. S&P reiterated their sell opinion on the stock saying that they were concerned over the accelerating loss of subscribers over the past three quarters.

The stock appeared on our list of Stocks to Sell in April, when I said, “The company reported fiscal Q4 2013 earnings of $0.22 cents per share at the end of March, but it lost about 3 million subscribers during the period. And its newly introduced BB10 smartphone, which is aimed at the high end of the market, has had mixed reviews.

“The stock is currently trading in a triangle with support at $13… A breakdown of [that support] should provide a target of $10.”

On June 28, the stock fell from its support at $13 accompanied by a massive sell-off and huge breakaway gap. BBRY appears to lack support at any level, but the current breakdown has a downside target of $6.50.

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