David Einhorn purchased 2.9 million shares of Research in Motion last quarter, I wonder how he feels about those RIMM shares today?
Perhaps Einhorn, like Mark Cuban, isn’t really too concerned but such a small investment or trade. Einhorn’s hedge fund, Green Light Capital, has a huge position in Apple, and maybe these 2.9 million shares are just a flyer or lottery ticket. But still, for the regular person on the street, this is a huge sum.
Back in mid February, when Einhorn’s RIMM position was disclosed, it was worth about $44 million. Now, after Research in Motion announced they hired JP Morgan to look at “strategic options” and “alternatives”, it’s worth roughly $28 million, with the stock down 13% in the after hours. It’s only a paper loss of $16 million right now for Einhorn. That’s probably like a bad night of Poker for him – throwaway money that he finds behind his couch.
Here’s the ten year chart for Research in Motion. It was a good run. Just four years ago RIMM was trading for $144, now it’s under $10 a share. Remember when everyone couldn’t leave home without their CrackBerry? Remember when everyone loved the keyboard on the phone?