RIM results could fuel more BlackBerry 10 buzz

krishna · 12-17-2012, 01:07 PM · 1 person reading this discussion

#1
TORONTO, Dec 16 (Reuters) - The surprising rally in Research In Motion stock from its September depths shows no signs of waning ahead of next month's crucial launch of the company's BlackBerry 10 smartphones, and the stock could ring up more gains if RIM delivers on a handful of telling metrics in its quarterly report on Thursday.

At this stage, profit and revenue won't matter much for RIM . The company will likely report a third straight quarterly loss, reflecting declining monthly service fees, ebbing device sales and other problems.

What investors want to see are indications of momentum as the BB10 launch on Jan. 30 approaches. The new line is probably the company's last hope of reclaiming market share lost to Apple's iPhone and devices powered by Google's Android operating system.

"The biggest catalyst for the stock by far is a successful BlackBerry 10 launch," said Morningstar analyst Brian Colello. "The entire investment thesis hinges on BlackBerry 10 ... so that is the key focus right now."

With focus on the launch, cash on hand will indicate whether the Waterloo, Ontario-based company has the funds it needs to market its new line effectively.

"I want to see the cash balances retained so that they have lots of availability to support the launch of BB10 in January and February," said National Bank analyst Kris Thompson.

#2
While BB10 looks great in terms of the UI interface and features, IMO it alone won't save RIM.ย  There is nothing particularly revolutionary about BB10 to make it stand out or stand apart from iOS or Android.ย  But as always, the market will decide BB10 and RIM's fate.

#3
after the close today

#4
Rimm trading at 13.75

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