RIM Stock Tanks: Time to Buy?

Research In Motion's stock (RIMM) has taken a walloping over the past several months. It peaked at an historical high in June of this year at $148.13 on the NASDAQ market and then plummeted to a 52-week intraday low of $50.22 on October 10^th. Yesterday saw its lowest closing price in recent memory at $48.65. The markets in general have taken a beating. This rollercoaster ride is tough on the stomach!



Having said that, there is room for optimism. This could be the bottom we've been expecting for RIM stock to hit before its much needed bounce. Here's how the thinking goes: RIM's product, the BlackBerry remains a leader in the smartphone market despite the entry of numerous competitors, most notably the Apple iPhone and today, the much anticipated first Google Android phone, the T-Mobile G1. These novel devices are largely consumer phones, whereas Blackberry's entry into the consumer market was comparatively recent. BlackBerry's solid base is among enterprise users and in that market, there is no competition. No other device comes close to BlackBerry's access to corporate email and data access in terms of availability, flexibility, and security.

The delay in the scheduled release of the top-of-the-line BlackBerry Bold by RIM and AT&T has also been a drag on BlackBerry. Initially slated for early summer 2008 release in the U.S., the companies have finally announced that it will be available on November 4^th, fortunately in time for the holiday shopping season. The touchscreen BlackBerry Storm should also be released in November in the U.S. by Verizon Wireless and Vodaphone in Europe, India, Australia, and New Zealand. The first BlackBerry flip phone, the Pearl 8220 was released on October 13^th by T-Mobile to rather lukewarm sales, but it was never intended to make the enormous splash expected of the Bold and the Storm.

Despite the fact that this is a difficult time to trust the advice of experts, the Zacks Investment Research's average brokerage recommendation for RIM stock is a moderate buy. Perhaps more significant is the fact that most brokerages in the rating give a strong buy recommendation with the average being pulled down by the naysayers. My take? Hold on, I've got to call my broker.

Check out our smartphone recommendations for details about these and other devices, and don't forget these other blog posts:

Apple's App Store Downloads Hit 200 Million

Realtime BlackBerry Apps Testing Available Online

HP Keeping Secrets about Touchscreen Phones

November 4th BlackBerry Bold Release and Price Official

Be Careful: Your PS3 Is Listening to You