RIM stock pops to highest price since April 2012
Thorsten Heins, president and CEO of Research in Motion (RIM), speaks at the company Annual General Meeting in Waterloo, Ont., Tuesday, July 10, 2012. (Dave Chidley / THE CANADIAN PRESS)
The Canadian Press
Published Monday, January 14, 2013 3:54PM EST
TORONTO -- Research In Motion (TSX:RIM) stock jumped Monday in a second day of heavy trading, rising above $14 a share for the first time since last spring.
The BlackBerry maker's stock gained $1.36, or 10.2 per cent, to $14.67 in afternoon trading. That's the highest since RIM stock traded at $14.95 in early April 2012.
More than 10.5 million RIM shares traded at the Toronto Stock Exchange at 1 p.m., making Research In Motion one of the market's most active stocks.
The push comes ahead of the Jan. 30 launch of RIM"s new BlackBerry 10 products, which are seen as a make-or-break development for the Canadian tech company, based in Waterloo, Ont..
RIM's stock price has been recovering by fits and starts from a setback after the executives told analysts last month that the company is changing the fee structure for its service.
The jump in RIM's share price also comes amid reports that Apple Computer Inc. (Nasdaq:AAPL) may be getting less demand for the iPhone 5 than anticipated.
The two companies are in fierce competition with each other as well as with smartphone makers that use the Android operating system.
Apple Inc. stock was down 3.6 per cent, or $18.64, to US$501.66 on the Nasdaq on reports that the company has reduced orders for parts of the iPhone 5 after sales fell short of expectations in the current quarter.
Apple has dethroned RIM as the leading supplier of smartphones but faces challenges from South Korea's Samsung as well as revitalized products from RIM and Microsoft -- which has a line of phones using the Windows operating system.
BMO Capital markets analyst Tim Long, who has an "underperform" rating for RIM, said Monday he's not optimistic about the success of the BlackBerry 10.
"But we think more of an issue for the stock after this BB10 launch will be the rapid declining service revenue line, which has been all of their profits," Long said on a BMO technology outlook call.
Long said he also doesn't expect much success from Microsoft's new operating system Windows 8 in Nokia smartphones.