How Much Longer Can RIM Keep Rallying?

Research In Motion (NASDAQ: BBRY  ) , makers of the BlackBerry, are up more than 11% today, meaning it's up over 160% for the past six months. The market's reaction came on the heels of news that the company might spin off its handset business and switch to a licensing-based business model, which is a higher-margin space. In this video, Motley Fool tech and telecom analyst Andrew Tonner tells investors that this is old news, and that without having seen how Blackberry 10 will perform, or what the company's device shipment plans are once it launches, there is still plenty of risk here and investors should temper their optimism.

Unless RIM can find firm footing in the new age of smartphones, its era may be over, as companies like Apple have now taken the lead. There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


Read/Post Comments (25) | Recommend This Article (6)

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 January 22, 2013, at 6:58 PM, itsthebox50 wrote:

    You know what else is old news? You continually saying that RIMM is a sell. Also, 19k in apps submitted this past weekend, 15k the weekend before... I think that is called developer interest

  • Report this Comment On January 22, 2013, at 7:06 PM, ezroller26 wrote:

    Why does the 52-week range show 0.00 as the low? And you incorporated a short interest # without stating that it is at a yearly high? I understand there are a lot of young people working on this site - just because you are young however doesn't give you excuse to be stupid.

  • Report this Comment On January 22, 2013, at 7:06 PM, jwjsprenger wrote:

    Waste of 5 minutes watching this clip from an Apple fan boy who missed out on the the RIMM rally. RIMM is bringing out a better phone than iPhone while Apple has a market value of $500 billion compared to RIM's $9 billion. Which one is overvalued? What has Apple got coming down the pipes besides more overly hipped mutations of their iPod.

  • Report this Comment On January 22, 2013, at 7:08 PM, myeerah wrote:

    I don't know how many times this young man has said the same thing.Maybe if he keeps saying the same thing it will come true! He repeats the general consensus and never sticks his neck out on the line with bold guidance on a company.

  • Report this Comment On January 22, 2013, at 7:23 PM, myeerah wrote:

    The fundamentals are breaking down?? Rimm was over sold at $6.00 and change.It was left for dead.The share price now represents book value.79 million subscribers around the world and a loyal user base.Its called value investing.If you want to make money buy when everyone hates a company.Buy when there is blood in the streets! Don't jump on the wagon once it is full.Find a company Wall Street hates and research the crap out of it to find value.

  • Report this Comment On January 22, 2013, at 7:27 PM, myeerah wrote:

    The "I need help guy" is back and angry as ever.You have such large blinders on I don't know how you make money or even see for that matter!

  • Report this Comment On January 22, 2013, at 7:39 PM, magnaman1969 wrote:

    How long cam RIM continue to rally?

    As long as you keep rolling out Napoleon Dynamite to present the case against it...

    That's how long.

    What a dumb ass video...

  • Report this Comment On January 22, 2013, at 7:40 PM, magnaman1969 wrote:

    The Fool continues to give my son hope that he can drop out of high school and earn a living spewing horeshit on Investment web sites like the Fool.

    I want my. 5 min back....

  • Report this Comment On January 22, 2013, at 7:42 PM, magnaman1969 wrote:

    @infothathelps

    Give it up..nobody listens to you.

    Maybe you can team up with the idiot in the video and make a special video in his mom and dads basement.

    Loser

  • Report this Comment On January 22, 2013, at 7:44 PM, magnaman1969 wrote:

    @infothathelps

    Still mad because RIM tossed your dumb ass out the back door?

    Get over it.

    I can tell by your comments they made the right choice....having a moron like you anywhere near BB10 would be foolish.

    Get a job ya bum!

  • Report this Comment On January 22, 2013, at 7:47 PM, magnaman1969 wrote:

    @infothathelps

    The only "insider" info you got was the fat wiener RIM rammed up your ass when they fired you.

  • Report this Comment On January 22, 2013, at 7:48 PM, magnaman1969 wrote:

    Toner is a boner

  • Report this Comment On January 22, 2013, at 8:04 PM, sharkfish wrote:

    can you not move when you talk...make me dizzy...

  • Report this Comment On January 22, 2013, at 8:34 PM, mirra88888 wrote:

    Sometimes businesses skyrocket when they have a good product or change their business strategy.

    Rim was $20 in June 2006 and Skyrocketed to $120 just one year later. Apple was $89 in 2009 and went as high as $700 just a few months ago.

    Volatility is a part of business when it comes to technology.I think Rim had dropped way too low the middle of 2012, and now it has potential to go to $30 or $40s with minimal effort.

    I also think Apple is a great company and my guess is that it will beat their estimates tomorrow. Their ecosystem will keep them self-sustained.

    Rim's new phone will take some business from apple but not much. I think the one who lose the most on this is Google phones. They are the newest comers and do not have all the nick-nags not to mention the loyal customers apple has. Any company with superior phone will easily take over their number one position.

  • Report this Comment On January 22, 2013, at 8:41 PM, mexicomongoose wrote:

    There are people who is afraid of changes and new things, for sure the BB10 will be a succes, no company plays "all in" without an ace!

  • Report this Comment On January 22, 2013, at 8:50 PM, Chippy55 wrote:

    The only thing wrong with RIMM at this point is the steepness of the curve and today it should have pulled back in line with the upper Bollinger Band as it has multiple times in the past 6 months. Stocks usually move 3 steps up, 1 back, just saying that when you see ANY stock shootin' straight up it doesn't take that many sellers to push it down, and no one ever went broke taking profits. As for that Tonner guy, i have shoes older than him and he completely missed the boat, what, there isn't enough money in the entire universe of stocks that he doesn't want people making a few bucks in something he's not in?

  • Report this Comment On January 22, 2013, at 8:57 PM, Arthur1111 wrote:

    magnaman: Your are correct. The Napoleon Dynamite in the video and the lackofinfo should team up for a loser video.

    I want my 5 minutes back too. If I had spent it on RIMM, I would've made another thousand dollars.

  • Report this Comment On January 22, 2013, at 9:21 PM, H3D wrote:

    "How Much Longer Can RIM Keep Rallying?"

    Until the sales figures come in.

    Then there is no longer any reason for blind faith.

  • Report this Comment On January 22, 2013, at 9:58 PM, BR14 wrote:

    @infothathelp Have you had your brain removed?

    "I have insider tips"

    Sounds like you're admitting to insider trading. We know what you meant, but the authorities might not realize your innocence.

    By the way RIM is going up because there is massive pent up demand for RIM devices. So much so RIM have apparently recently quadrupled their monthly build for BB10 (that's public info).

    Hope you're not shorting RIMM - or if you do have a good hedging strategy.

  • Report this Comment On January 22, 2013, at 10:33 PM, digitally404 wrote:

    @InfoThatHelps

    You're shorting RIMM. We get it. There's no other rational reason someone like you would incessantly spam the message boards with incoherent anti-RIM rants. Please post once and be constructive about it.

    @This Article

    I didn't watch the clip because of the negative reviews of it, but please substantiate your article with some more details and analysis to answer your question: How long will this rally last?

    My bet is BB10 will do quite well. There's enough of a market to feed all the big mobile providers.

  • Report this Comment On January 22, 2013, at 11:01 PM, eidsonb wrote:

    Yawn....about what I expected from the video and the troll and his comments...Infothathelps AKA JamesApple.....

  • Report this Comment On January 22, 2013, at 11:03 PM, eidsonb wrote:

    Man these guys love their Apples,,,

  • Report this Comment On January 22, 2013, at 11:44 PM, TimKnows wrote:

    Tonner is a moron, he can't help this.

  • Report this Comment On January 23, 2013, at 12:12 AM, TimKnows wrote:

    InfoThatSucks same garbage every day.

  • Report this Comment On January 25, 2013, at 12:01 PM, TempoAllegro wrote:

    A family member was advising me to buy both Nokia and Research in Motion before earnings, when both stocks were quite low. He had gone out and seen the new Nokia phones - Lumia, and was excited at how good the phones were and that Nokia landed a deal with China Mobile.

    So I looked into it more. Before this I had favored Google because of its Android platform. I got mixed feelings about Apple.

    Nokia, I felt, had too much invested into the low end of the cell phone world, where competition from cheap Asian manufacturers is fierce. Plus, they did not have their own platform, but are using Windows 8 from Microsoft, which I view as a negative because a) Microsoft is not the most creative, cutting edge company one could think of, and b) their motives may be suspect - basically, I don't really trust them to be a real or helpful partner for Nokia. On the plus side, Nokia is well-known, had a dividend, and I happened to own a regular Nokia phone which is pretty good at the moment.

    Research in Motion is focused on high end users, making it a true competitor to the big dogs. It has its own platform, recently revamped and soon to be unveiled. It is well known for its good security, which will become an increasing concern going forward. Also, if you don't like the keyboard setup, they will have a pure touch screen version available that is similar to its competitors.

    So I passed on Nokia, and went all in on RIMM. this turned out to be an awesome choice. However, I worry that most of the gain I can expect has already been realized as I already have over a 20% gain.

    I was just about ready to sell when this video reminded me the BB10 is coming out next week, so it seems unwise to sell before then.

    If there is advice out there on when to take profits or if RIMM should be sold before BB10 comes out, I would like to hear it.

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