RIM Shares Run to the Limit
Shares of Blackberry maker Research In Motion (RIMM) have had a fantastic run. The stock has zoomed 91% over the last year, and in the last three months alone, it has shot up some 75%.
But how likely is it that such a torrid pace can continue?
RIM's run is the envy of rivals and a source of joy to investors who hopped aboard last quarter, but some observers now see an overvalued name that can't have much run-up left. They say there might be better value going forward in handheld rivals Palm (PALM) or Motorola (MOT).
RIM's recent performance may be mostly momentum-driven, says Roger Nusbaum, portfolio manager for financial planning firm Your Source Financial and a contributor to RealMoney.com. "RIM's rally now is more about the state of the market than what's going on fundamentally with RIM," he says. "I do not think RIM will turn down before the market, so it has at least six to eight weeks of further momentum, but whether there are any fundamentals behind it is arguable."Shares of RIM closed at $129.14 on Tuesday. The type of continued success in such a stock climb can be deceptive, says Phillip Butts, president of Moreten Bay Capital. "You have over 30 analysts now who cover the stock, and when you have that kind of coverage, you get a bit euphoric."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV