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The Real Reason RIM Rallied

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On Wednesday, Research In Motion (Nasdaq: RIMM  ) shareholders got a rare and welcome reprieve from the typical onslaught of bad news of late.

The stock had jumped higher to the tune of 13% on more than three times the average daily volume before closing out the day with a healthy 10% gain. While initial reports suggested that the catalyst of the surge tied back to speculation that the BlackBerry maker may be put out of its misery and acquired by the likes of tech heavyweights -- either Amazon.com (Nasdaq: AMZN  ) or Microsoft (Nasdaq: MSFT  ) and Nokia (NYSE: NOK  ) jointly -- that conjecture overshadowed the real reason behind the move.

To unearth the real cause, you had to dig beneath those speculative acquisition headlines to find something based on undeniable fact. Something not spawned by dubious guessing games and questionable rumors. Something that is attributed to incontrovertible truth instead of "people familiar with the matter." Something ... with a slingshot.

Angry Birds.

At long last, after investors' seven long months of anxiously waiting with bated breath, RIM has delivered. The notoriously popular and addictive avian adventure to slay swine and rescue their offspring has now made its way to the PlayBook, fulfilling a promise personally made by co-CEO and co-Chairman Mike Laziridis. Investors rejoiced that the darkest days are over and welcome a signal that RIM's app platform has reached a maturity milestone long enjoyed by Apple (Nasdaq: AAPL  ) iOS and Google (Nasdaq: GOOG  ) Android: quadriplegic fowl.

Presumably, the company had focused its resources toward strengthening its relationship with developer Rovio to help accelerate the game's arrival, while delaying other secondary functionalities such as native email and calendar apps. Also on the back burner are Android support and the delayed BlackBerry 10 operating system that will run all future BlackBerrys.

As the saying goes, "The darkest hour is just before the dawn." Research In Motion's darkest hour has been the last few quarters, and its dawn is pulverizing green pigs with an arsenal of multitalented, multicolored birds with a taste for vengeance.

Want to make sure you stay updated with the latest news and analysis and see when the PlayBook finally gets native email and calendar apps? Use our free Watchlist feature to always stay up to speed on the latest developments.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Evan Niu owns shares of Amazon.com and Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Apple, Microsoft, Google, and Amazon.com. Motley Fool newsletter services have recommended buying shares of Google, Apple, Amazon.com, and Microsoft and creating bull call spread positions in Microsoft and Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 23, 2011, at 7:53 PM, kabster wrote:

    And this is exactly the reason I do my own research and DO NOT listen to the talking heads and the MSM. Yahoo just today had a bashing story about RIMs inevitable failure. Some people would rather have a RIM device. And some people would rather waste money on the new in thing. I'm looking @ u Apple.

  • Report this Comment On December 23, 2011, at 8:16 PM, tkell31 wrote:

    Congrats Kabster, up until this very moment I had never met or hear of anyone who preferred a blackberry over an Apple product. Considering our whole company is issued blackberry's I'm guessing my sample size is about 250 people. As an aside I guess our complaining must have worked, we're ditching the crapberry and going with Apple

  • Report this Comment On December 23, 2011, at 9:26 PM, InfoThatHelp wrote:

    kabster does not do any research at all, kabster is a shameless liar just like Michael Lazaridis and Jim Balsillie of Research In Motion, a lousy fourth rate email phonemaker. kabster is nothing more than a low life whiner never tired of cursing against Apple and Android who are absolutely bashing Rim's heads in, and meanwhile, continue on bullying smaller companies such as BBM Canada over Rim's illegal use of the BBM monicker in all its public use of the BBM trademark without any conscience or shame. Rim has been cited as the world's most shameless company constantly insulting the world's laws, regulations, social fabrics, customer needs and requirements, decency, business management, Rim's own shareholder welfare, public opinions, media interview etiques, and a whole slew of social and business concerns. Rim's collection of flaws is overwhelming enough to kill ten companies there is absolutely no question in my mind that the Canadian governments are behind the shady businesses of Research In Motion.

  • Report this Comment On December 23, 2011, at 9:50 PM, InfoThatHelp wrote:

    In my views, Rim is a run as a medieval empire with a mad scientist (Lazaridis) and a overzealous yet mediocre salesman (Balsillie). Rim got real lucky getting into the pager business which transformed into a mobile emailphone that eventually replaced millions of old obsolete pagers. The reason why Rim beat out Palm into the enterprises is precisely because of the natural transition from office pagers to the emailphones from Rim. This business is estimated to be around $12 billion present value which include huge infrastructures such as the pager network, dispatchers, controllers, these are the forefathers of the BES and BIS infrastructures, Rim's roots are in the pager business, and to this day, this pager based Rim business has changed very little, as seen by the near impossibility of merging Rim's pager based Blackberry OS with the multithreading AC device based QNX microkernel. Rim's pager message business is fully reflected in Rim's BBMessenger program which has its attraction to the primitive needs of poverty stricken undeveloped nations, and the allowance dependent teenagers of the world, but the free iPhone 3GS has turned the table to this scenario, within a couple more quarters, the iPhone 3GS will completely eliminate the low life Blackberry Curves. The writings are all over the walls, people and organizations of the world cannot use Rim's pager message based service and network, the far superior and advanced powerful iCloud and other clouds such as Google have effectively killed Rim's service network. Rim is ready to go out of business as of now everywhere in the world.

  • Report this Comment On December 23, 2011, at 9:59 PM, InfoThatHelp wrote:

    A modern day realistic look at the Rim business would reveal Rim to closely resemble the myriads of Bell land based phones and public telephone booths, you must be using these old fashioned Bell Black phones or put a coin into the coin slot of the public telephones, and frankly, when was the last you did either prehistoric things?

  • Report this Comment On December 24, 2011, at 10:21 AM, crazyoldguy wrote:

    Rimm Subscribers went from 70 to 75 million last quarter? Little debt? P/E 3? Is this info correct? If you think or know its that bad as comments suggest you are obviously short. Yes i am long took a small position and if rim is going out of business next month? summer? Does it have ANY value as a takeover or sold an broken up?

  • Report this Comment On December 24, 2011, at 1:04 PM, InfoThatHelp wrote:

    Rim has lost and is still losing businesses in hardware and services big time. Subscribers alone would bring in less than 20% of revenue Rim has been receiving, and even that is dubious as subscribers can go down as the number of Blackberry users decline sharply. If a business can thrive on bringing in only a tiny percentage of its revenue then all the glory to this business, but the hard truth is this business is simply not going to make it while losing 90%+ of its revenue YoY next year. The horrific business track record speaks louder than any bold yet bogus words, come next year as Rim suffer even more horrific losses with no takeovers to rescue its failing business.

  • Report this Comment On December 24, 2011, at 4:14 PM, dxtx wrote:

    InfoThatHelp is off his meds for sure. Always bashing RIM since he is probably a short. Reminds me of James* also found bashing RIM.

    I have a Playbook and it is a great device for me, and if QNX on the Playbook is an indication of future RIM phones, then they will be great user friendly phones.

    Previously I bought an Ipad2 and was so underwhelmed that I took it back within two days.

  • Report this Comment On December 24, 2011, at 4:57 PM, InfoThatHelp wrote:

    Most Rim trolls don't invest, they just shoot off their mouths.

    I have deposited $87,635.98 into my savings account shorting Rimm for the past 3 months.

  • Report this Comment On December 25, 2011, at 8:38 AM, crazyoldguy wrote:

    Merry Christmas Info All i know that with my limited knowledge base is if you short now $14.00 has a profit limit to 0 shorting here seems a little risky no one has a crystal ball just seems to me in the near term, say a couple of weeks the risk reward for the shorts is just to great. I dont want to get into personal barbs about each other just want to learn did ok the last two weeks day trading. One thing i have learned is there is a lot of stocks to trade dont have to hang your hat on any one of them just watch news and price and volumne over reaction either way and a little money can be made i have a small position long on rimm.

  • Report this Comment On December 25, 2011, at 5:20 PM, InfoThatHelp wrote:

    I am going to short Rimm $8 into February. Insider news Rim Blackberry sales really bite the dust with near zero Playbook sales because of growing Kindle Fire, iPad 3 coming out. Some associates are venturing into $7 and even $6.50 but I'm not that aggressive. Merry Christmas everybody.

  • Report this Comment On December 26, 2011, at 9:28 AM, dxtx wrote:

    InfoThatHelp, you are either illegally trading on insider information or making up stories.

  • Report this Comment On December 28, 2011, at 11:18 AM, crazyoldguy wrote:

    sold rimm yesterday for 8% gain 4 days

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