1. gwanstarr's Avatar
    RIM gets big bounce - but still cheap - The Tell - MarketWatch

    RIM gets big bounce — and it’s still cheap
    November 23, 2012, 12:47 PM
    Few stocks have taken a beating like Research In Motion Ltd., which has plunged from a $60 price tag two years ago to near $6 just two months ago.

    That severe drop — which put RIM shares RIMM -0.17% at nearly half the company’s estimated book value — was severe enough to set up a strong upside run that began in late September, when the company gave developers a preview of the BlackBerry 10 operating system and affirmed its goal of launching the new platform and handsets in early 2013.

    ReutersCEO Thorsten Heins discusses Blackberry 10.
    The stock got more juice this week after a pair of analysts projected a more positive reception for the new platform. That included a surprising upgrade by Peter Misek of Jefferies & Co., who’s long been bearish on the BlackBerry maker’s prospects against the iPhone and Android platforms. Misek upgraded the stock to a hold rating Tuesday, sparking a jump that added nearly 6% to the stock before the Thanksgiving break.

    Another 15% came in Friday’s shortened trading session, after National Bank of Toronto upped its price target on the shares to $15, predicting a better-than-expected launch of BlackBerry 10. RIM, based in the Toronto area, is on track to close the week with a gain of more than 25% — pushing the stock to its highest level in six months.

    Both analysts have cited research and other feedback indicating strong interest from wireless carriers in BlackBerry 10, which may help the platform’s launch if carriers add marketing and promotional support. While carriers like AT&T and Verizon already have robust smartphone businesses with the iPhone and Android platforms, Misek notes, advancing a theory that “carriers see BB10 as one of their last chances to avoid being locked into a long-term smartphone OS duopoly.”

    However, even with its strong run of late, RIM shares still trade around 70% of the company’s estimated book value, according to data from FactSet. That reflects two distinct possibilities: (1.) that a strong launch of BlackBerry 10 might trigger a big upswing driven by short sellers trying to cover their bets or, (2.) a weak launch could push the stock even below its record low, as the company is presumed to have few prospects without a competitive platform.

    “With greater carrier shelf space and marketing support, we now believe BB10 has a 20%-30% probability of success,” Misek wrote, upping his price target from $5 to $10, adding that, despite those poor odds, “the potential reward is high.”

    – Dan Gallagher
    11-23-12 12:18 PM
  2. Bla1ze's Avatar
    11-23-12 12:43 PM
  3. gwanstarr's Avatar
    grassy asss senior
    11-23-12 01:08 PM

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