Value Play or Value Trap? (NASDAQ:RIMM), (NASDAQ:MRVL)

December 27, 2012, 08:55 am ET, BY Thomas H. Kee Jr- Editor, Stock Traders Daily| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Two companies have been in the news lately, investors are considering them for value opportunities, but in each of these two names the risks are high.  Stock Traders Daily has issued real time trading reports for each of these companies, they are updated in real time, and although the details will change as the dynamics of the situations also change, this is what these reports are telling us about Research in Motion (NASDAQ:RIMM) and Marvell Technologies (NASDAQ:MRVL) right now.

Research in Motion (NASDAQ:RIMM):  RIMM has experienced an aggressive increase since late September.  Everyone had written RIMM off, but the snap-back has many investors second guessing that opinion.  Our real time report tells us that we now have a downside protection catalyst in midterm support.  When reviewing our real time report for RIMM, make sure to look at midterm parameter #1.  This is a dynamic number and may change, but for now it is a very important support level.  If it holds RIMM may actually turn out to be an exceptional value play from these levels because the stock has plenty of room to increase, but if midterm parameter #1 breaks lower instead the stock could easily fall below its recent lows (see longer term parameter #3 in that same report), and that would define RIMM as a true value trap instead.  Consider midterm parameter #1 both as a level near which one may want to buy RIMM, but also as a stop-loss level, which if broken would suggest a sell to protect that position.

Marvell Technology (NASDAQ:MRVL): MRVL has recently tested longer term resistance as that is defined in our real time trading report for MRVL.  Review longer term parameter #3 in our real time trading report for details.  In addition, the stock has also already begun to decline violently, but it has not yet tested longer term support.  Longer term support is considered to be longer term parameter #1 in that same report.  According to our combined analysis MRVL is an avoid unless it declines to test longer term parameter #1 as a result.  If longer term parameter #1 is tested and if it holds MRVL may turn out to be an excellent trade, but for now the stock appears to have additional room to decline.

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