The RIMM vs AAPL Relationship Revisited

Back in June 2010 I posted about the trend in the spread between $RIMM and $AAPL:

$RIMM announced earnings yesterday after the close.  Here is the spread between $RIMM and $AAPL since February.  The spread has shifted so much that To balance the spread seen above I’m using almost 6 shares of $RIMM to every 1 share of $AAPL!  I’ll let the chart speak for itself as far as the market’s feeling about $RIMM’s roadmap for competing with the iPhone and Android.

NOTE: Today’s move represents -3.5 times the expected range.

Fast forward one year and you can see that the trend is still very much in tact.  Same story: $RIMM can’t compete with iPhone or Android.  I’m a mean reversion guy but this is a reminder to pay attention to technological trends and macro factors.  If you were scalping back then you would have survived, but if you were waiting for a big move, you’d have been crushed.  Everything mean reverts eventually, you just might not like where the mean is when it does.

The small red arrow is the date when the original article was published.

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