RIM shares play catch-up on the Nasdaq; trim gains in Toronto

Fri Nov 23, 2012 3:16pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

By Euan Rocha
    TORONTO, Nov 23 (Reuters) - Research In Motion's U.S.-listed
shares played catch-up on Friday, surging more than 13
percent after the Thanksgiving holiday to match some of the
gains the stock posted Thursday on the Toronto Stock Exchange.
    RIM's Toronto-listed shares surged more than 17
percent on Thursday, after National Bank analyst Kris Thompson
boosted his price target on RIM to $15 from $12. Thompson argued
that there is money to be made in the stock ahead of the early
2013 launch of a make-or-break line of BlackBerry devices. 
    The Waterloo, Ontario-based company's stock was by far the
most actively traded stock on the Nasdaq on Friday, with trading
volumes topping those of U.S. tech giants such as Microsoft Corp
, Intel Corp and Facebook.
    RIM shares rose 13.6 percent, or $1.40, to close at $11.66
in a shortened trading day in U.S. markets. The stock, also one
of the most actively traded on the Toronto Stock Exchange on the
day, pared some of its gains from Thursday to slip 38 Canadian
cents to C$11.62 by 1500 ET.
    The BlackBerry maker, a one-time pioneer in the smartphone
industry, hopes its new line of BlackBerry 10 devices will
rescue it from a prolonged slump and help it win back market
share lost to rivals such as Apple Inc's iPhone and the
slew of devices that run on Google Inc's Android
operating system.
    Barry Schwartz, vice president and portfolio manager at
Baskin Financial Services, believes that investors betting on
RIM right now are speculating that the company can turn itself
around, a tough task for any company in the ultra-competitive
and fast-paced technology sector. 
    "It's very hard for a technology company to turn themselves
around. Apple did it years ago, Palm did a face plant. So you
are buying the stock on hopes that the phone will do wonders,"
said Schwartz, who does not have any positions in the stock at
this time. 
    "You really have to be betting the farm that BlackBerry 10
is going to be the be-all and end-all in smartphones and
encourage people to switch from Apple, Samsung or Android to
switch back to BlackBerry," he said. 

 (Reporting by Euan Rocha;editing by Sofina Mirza-Reid)