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Is Research in Motion a Take-Over Candidate?

Once a darling for growth investors, Research in Motion (Nasdaq: RIMM) has quickly become a dud investment.

Shares of RIMM made many investors a millionaire as they climbed from $1 to $130 over a five year span that ended in 2008. At that time, the maker of Blackberry devices looked ready to lead all Nasdaq-listed stocks for the next decade.

To the dismay of stock holders, a combination of production cost, rising competition from Apple (Nasdaq: AAPL) and a lack of innovation quickly sent shares of RIMM tumbling from a high of $148 in 2008.

Over the past few years RIMM has disappointed investors with sluggish growth. In fact, as recently as last Friday the smartphone maker warned it would again fall short of its own earnings targets this year.

After Friday’s news that RIMM announced it would not meet its EPS target of $5.25 per share the stock tumbled 8%. Shares quickly moved below $20 to $16 – a price the stock has not seen for five years.

Research in Motion is not the growth company it was seven years ago, and its product lineup is outdated as well. But at $17, and with buyout rumors surfacing, are shares ready to pop?

The following video takes you through the chart of RIMM to see if it is a good bullish trade. And I’ll also provide you with the best strategy for accumulating shares.

Jason Cimpl
Editor, TradeMaster Daily Stock Alerts
Washington, DC

Editor’s Note: Jason’s trading service, TradeMaster Daily Stock Alerts, is having another banner year 108.4% total gains in January… 97.7% total gains in April…41% total gains in September…89.2% total gains in October. Click here link to start today.

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