Hold Off on Taking a Shot at RIM

Trying to gain an edge ahead of Research In Motion's (RIMM - commentary - Cramer's Take) third-quarter report, due on Dec. 21? If you're trying to base it on sell-side predictions, you might be better off flipping a coin.

The reward of owning Research In Motion before the quarter is not worth the risk. Traders have no edge, and long-term investors looking to buy would do well to wait until after the quarter has been reported.

Research In Motion has been one the best-performing large-cap tech stocks this year, and it has enjoyed widespread brand recognition from its signature BlackBerry wireless platform. As a result, every tech analyst now seems to have an opinion on its stock. There are now 25 analysts covering Research In Motion -- more than those covering Apple (AAPL - commentary - Cramer's Take) or Microsoft (MSFT - commentary - Cramer's Take).

If you sift through some of the research reports, you'll find sharply contrasting opinions about where the stock is heading. Analysts' average target price on this stock is $135 -- roughly its current level -- with a range between $65 and $180. This is by far the largest percentage-based target range for a stock price that I've seen since the Internet bubble.

The reason for this wide discrepancy is simple: Analysts are torn between growth and valuation.

The Growth Fans

Research In Motion has a leg up in the underpenetrated enterprise market for mobile messaging service, software platforms and new products, including the Pearl phone, which has been flying off the shelves. Pearl was launched in September at T-Mobile and is now being offered at Cingular, which has more than twice as many U.S. subscribers as T-Mobile.

Investment firms TD Securities, Canaccord Adams, UBS and American Technology (AmTech) are all bullish going into the quarter. AmTech expressed its optimism on Research In Motion by saying, "We would be aggressive buyers ahead of results," and raised its target price to $175.

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In keeping with TSC's editorial policy, Frank Curzio doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships. Frank X. Curzio is a research associate at TheStreet.com, where he works closely with Jim Cramer and and writes TheStreet.com Stocks Under $10. Previously, he was the editor of The FXC Newsletter and senior research analyst for Greentree Financial, and passed his Series 7, 63 and 65. He appreciates your feedback; click here to send him an email.