RIM Shares Run to the Limit

Shares of Blackberry maker Research In Motion(RIMM Quote) 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 Quote) or Motorola(MOT Quote).

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."