RIM shares jump in Toronto, rebounding from post-earnings slide

Thu Dec 27, 2012 11:04am EST
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* Investors optimistic about Blackberry 10

* US shares rallied Wednesday after big drop Friday

* Analyst describes rebound as "value play"

By Allison Martell

TORONTO, Dec 27 (Reuters) - Shares of Research In Motion Ltd jumped more than 12 percent on the Toronto Stock Exchange on Thursday morning, following similar gains in New York on Wednesday, when Canadian equity markets were closed for Boxing Day.

Last Friday, the volatile stock plunged more than 20 percent after the company said on a post-earnings call that it was rolling out a new fee structure for its services segment, which some fear could pressure the high-margin business.

"It got hit so hard after the conference call," said Ed Snyder, an analyst with Charter Equity Research. "People are still fairly optimistic about (BlackBerry 10) coming out in January, so it's really just a value play."

In the fall of 2012, RIM rallied as investors grew more optimistic about prospects for its new make-or-break BlackBerry 10 devices, to be formally unveiled on Jan. 30.

Wednesday and Thursday's gains also came after several websites posted photos of what they said could be the first BlackBerry 10 phone with a physical keyboard.   Continued...