RIM Shares Soar on Optimism About BlackBerry 10

on Nov 23, 2012

On Thursday 22 November shares in Research In Motion (TSE:RIM), the BlackBerry handsets manufacturer, rallied on forecasts of solid results in the 2013 fiscal year.

**RIM’s BlackBerry 10 Prospects Excite Investors**
The stock rose by 17.30 percent and closed at 12.00 Canadian dollars after National Bank Financial said the new BlackBerry 10 might achieve better-than-expected sales.
According to Kris Thompson, an analyst at National Bank in Toronto, sales of RIM’s newest handset should reach about 35.5 million next year, an upward revision of the 31.6 million previously estimated. Mr Thompson lifted his price target for the US shares of the company to $15 from his earlier forecast of $12. RIM’s US share price (NASDAQ:RIMM) was unchanged at $10.26 as stock markets remained closed due to the Thanksgiving holiday.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

News agency Bloomberg reported that Eric Jackson, the president of Ironfire Capital, a hedge fund which was known to have shorted RIM’s shares, has bought the stock on Thursday as he expects it to appreciate on the back of large numbers of upgrades from loyal BlackBerry customers and government agencies.
“Most are greatly underestimating how many loyal subscribers will upgrade to BB10 in calendar 2013,” Jackson opined yesterday as quoted by Bloomberg. “All those pending upgrades are currently not factored into the stock.”

Kristian Tear, chief operating officer at RIM, has said that the BlackBerry 10 will launch on 30 January on multiple continents. The phone-manufacturing company hopes that its new smartphones, touch screen and QWERTY keyboard equipped, will deliver a much needed comeback after the significant loss of market share to Apple and Android-running devices.

**US Agency Has Had Enough of the BlackBerry**
The National Transportation Safety Board (NTSB), established to investigate plane accidents, disclosed through a document posted on a federal website last week that it will be switching from BlackBerrys to Apple’s iPhone 5 as RIM’s handsets have been “failing both at inopportune times and at an unacceptable rate,”

!m[The Ontario-Based Phone Maker Prepares for a Comeback in January](/uploads/story/883/thumbs/pic1_inline.png)In the NTSB notice it was written that the agency, which employs some 400 people, “requires effective, reliable and stable communication capabilities to carry out its primary investigative mission and to ensure employee safety in remote locations,” Eric Weiss, a spokesman for NTSB, did not elaborate what type of problems the agency has encountered with its BlackBerry devices and did not wish to tell reporters which generation of BlackBerrys the employees have been using.
Thorsten Heins, chief executive at RIM, said last week in an interview with Bloomberg that many government clients are using older versions of the BlackBerry software. “Many of these devices sit on BlackBerry 5 or BlackBerry 6, not even on BlackBerry 7, so the experience is not what I know and what other BlackBerry users know in the consumer domain,” he said. “It is a three-, four-year-old experience.”
According to RIM, the new BlackBerry 10 will feature an improved and more reliable operating system, on par with today’s standards set by Apple’s iOS and Google’s Android. Yesterday pictures of the BlackBerry 10 were leaked online showing that the device features a 4.2-inch touchscreen and a rear-mounted camera paired with a flash. Specifics of the hardware and the device’s processing power have not yet been disclosed.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Manufacturing Stock Market Tech