Advertisement
News
Advertisement

RIM rises on new BlackBerrys, changing landscape

Wed, 08/31/2011 - 11:00am
The launch of a string of well-received BlackBerry smartphones helped Research In Motion stock gain 6 percent on Tuesday and almost 50 percent since hitting a five-year low on August 8.

The smartphone maker has also been aided by Google's $12.5 billion move to buy Motorola Mobility, which analysts say could sow dissent within Android ranks and push wireless companies to more eagerly embrace alternatives to the Google software, which is used widely.

"It's all on the heels of Google/Motorola and what that means for the changing landscape, and there's also a little bit of what I consider excess patent fever going on," said Colin Gillis, a tech analyst at BGC Partners in New York.

Waterloo, Ontario-based RIM also holds a solid share of mobile patents, particularly in data compression, encryption and synchronization.

"It's a value name right now, it's a deep value name," Gillis said.

RIM's stock had been skidding since February, hurt by a drumbeat of negative news. The company's earnings have missed expectations and it sharply cut forecasts, while its PlayBook rival to Apple's iPad launched to dismal reviews.

RIM has launched new versions of its BlackBerry Bold, Torch and Curve smartphones this month, which have fared better than the PlayBook did with reviewers, while investors are also picking up RIM stock because of its low cost.

"One of the biggest factors is a general sentiment for beaten down stocks," said Elvis Picardo, strategist and vice-president of research at Global Securities in Vancouver.

"Investors are in the mood for bargain-hunting."

RIM's Nasdaq-listed stock closed 5.9 percent higher at $32.55 on Tuesday, after jumping 5.3 percent on Monday and 3.4 percent on Friday. On Aug 8 the stock closed at $21.87, its lowest level since September 2006 on a stock-split adjusted basis.

Its Toronto-listed shares rose 6.4 percent to C$31.91 on Tuesday, adding to a 4.6 percent gain on Monday and 2.8 percent rise on Friday.

(Reporting by Alastair Sharp; editing by Rob Wilson)

Topics

Advertisement

Share this Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading