Shares of Research in Motion (RIMM), maker of the popular Blackberry line of smart phones have fallen to $44 per share and the latest news is that the SEC has reached a settlement with RIM executives over an options backdating scandal. I thought options backdating was over and done with, but evidently there are still some cases that have yet to be resolved.
A lot was made at the time options backdating came to light, and the practice is certainly unethical, but it really will have no impact on the company’s business. RIM shares are down 70% from their highs and now trade at only 13 times current year earnings estimates. If you think Blackberries are here to stay, the weakness this week, in part due to the options headlines, is giving investors an interesting entry point.
Full Disclosure: No position in RIMM at the time of writing, but positions may change at any time