Research In Motion shares climb (Update)

Nov 23, 2012 by Charmaine Noronha

Shares of Research in Motion Ltd. Jumped nearly 14 percent Friday as investors seemingly grew more optimistic about a February launch of the Canadian company's much-delayed BlackBerry 10 smartphones.

RIM will release the latest version of its smartphone "not too long" after a Jan. 30 launch event, Kristian Tear, the company's chief operating officer, has said.

The new phones are seen as critical to RIM's survival as the smartphone pioneer struggles in North America to hold on to customers who are abandoning BlackBerrys for flashier iPhones and Android phones.

The Waterloo, Ontario, company seems to be preparing for a February global launch, a month earlier than many analysts were expecting, according to an analyst with National Bank Financial, a Canadian bank. Kris Thompson raised his shipments forecast for RIM for fiscal 2014 in a research note from Wednesday.

Thompson also increased his price target for the BlackBerry maker to $15 from $12.

RIM shares on the Nasdaq closed up $1.41, or nearly 14 percent, to $11.67 Friday in an abbreviated trading session on Wall Street.

The spike in the BlackBerry maker's shares came after a week of steady gains amid more positive sentiment.

On Wednesday, shares in Research In Motion gained almost 5 percent on the Toronto Stock Exchange even though it was reported that the U.S. National Transportation Safety Board had dropped the BlackBerry maker in favor of Apple's iPhone 5.

Thompson, the National Bank Financial analyst, was bolstered by RIM's new management team, which he said is maintaining the BlackBerry smartphone subscriber base, managing costs and cash, and seemingly readying a February 2013 BB10 global product release, a month earlier than expected.

He said certification of the new BlackBerrys by wireless carriers is the key risk to his prediction and estimate of BlackBerry shipments. Carrier certification, which tests the new devices, can take time.

The new BlackBerry 10 system is designed for the touch screen, Internet browsing and apps experience that customers now expect. RIM's current software is still focused on email and messaging and is less user-friendly, agile and robust than iPhone or Android.

Earlier this week, a prominent tech analyst gave RIM's new operating system a small but improved chance of success. Analyst Peter Misek of New York-based Jefferies & Company said he's still giving the BlackBerry 10 operating system only a 20 to 30 percent probability of success.

RIM was once Canada's most valuable company with a market value of more than $80 billion in 2008, but the stock has plummeted since, from over $140 per share. Its decline evokes memories of Nortel, another former Canadian tech giant, which declared bankruptcy in 2009.

Explore further: Alibaba steals Yahoo's thunder ahead of IPO

5 /5 (4 votes)
add to favorites email to friend print save as pdf

Related Stories

RIM shares up on reports of new BlackBerry

Jul 29, 2010

Shares in Canada's Research in Motion surged Wednesday on reports the BlackBerry maker plans to release a new smartphone next week to rival Apple's iPhone.

BlackBerry maker RIM's stock rebounds after results

Sep 29, 2012

BlackBerry maker Research in Motion's stock rallied sharply Friday a day after reporting a narrower-than-expected loss, as analysts debated whether the smartphone maker is poised for a rebound.

RIM shares soar on Icahn stake reports

Sep 27, 2011

Shares of Research In Motion rose sharply on Wall Street on Tuesday amid speculation that billionaire US investor Carl Icahn has taken a stake in the troubled BlackBerry maker.

Recommended for you

Weibo IPO below expectations, raises $285.6 mn

10 hours ago

Sina Weibo sold fewer shares than expected in its US IPO which was priced below expectations ahead of a Thursday listing that takes place after tech selloffs on Wall Street.

'Chief Yahoo' David Filo returns to board

11 hours ago

Yahoo announced the nomination of three new board members, including company co-founder David Filo, who earned the nickname and formal job title of "Chief Yahoo."

Fired Yahoo exec gets $58M for 15 months of work

11 hours ago

Yahoo's recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

IBM posts lower 1Q earnings amid hardware slump (Update)

21 hours ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exacerbated by weaker demand in China and emerging markets.

User comments : 0

More news stories

Tiny power plants hold promise for nuclear energy

Small underground nuclear power plants that could be cheaper to build than their behemoth counterparts may herald the future for an energy industry under intense scrutiny since the Fukushima disaster, the ...

Clean air: Fewer sources for self-cleaning

Up to now, HONO, also known as nitrous acid, was considered one of the most important sources of hydroxyl radicals (OH), which are regarded as the detergent of the atmosphere, allowing the air to clean itself. ...

Turning off depression in the brain

Scientists have traced vulnerability to depression-like behaviors in mice to out-of-balance electrical activity inside neurons of the brain's reward circuit and experimentally reversed it – but there's ...