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RIM Looks to Break Out

But the big questions for RIM-watchers will be whether the company can sustain that kind of growth -- and what that means to a stock that opens Wednesday's session a day after hitting a 52-week closing high of $148.31.

"Fundamentally, it has been a great story, and people are expecting a blowout quarter," says Matt Kelmon, portfolio manager for Kelmoore Investment, which has a position in RIM. "But it trades at a very high multiple -- about 35 times 2008 estimates -- so it is getting a little rich."

But fund managers have been saying such things about RIM about RIM for more than a few months, and it hasn't stopped the stock from touching new highs. The stock is up about 22% since setting its 2007 low in late January, and it has climbed about 90% in the last 12 months.

The stock's performance from here is likely to hinge on its guidance and any details the company offers about its upcoming product pipeline.

RIM could ship the next product in its device family, the BlackBerry 8300, by June and a CDMA version of the Pearl as early as May, Walkley expects.

"It's important to see if they can continue the momentum," says Kelmon. But for those investors getting increasingly concerned about valuation, he offers a suggestion: "I would be more likely to sell on any strength prior to or after the report and buy it again on a market correction."
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