courtesy of www.zacks.com
Original article can be found here.
5/22/07 2:44:25 PM
Research in Motion (RIMM) High on iPhone? -
Checking in on today's list of newly-tagged annual highs for Nasdaq-traded stocks, Research in Motion Limited stands out as the biggest point gainer. The Blackberry maker saw its shares peak at $159.57, though there aren't many headlines to explain today's jump. Over at BloggingStocks.com, Brent Archer suggests today's rise can be chalked up to a competitor's product offering - Apple's yet-to-be-released iPhone.
Archer suggests that RIMM's Blackberry is a cheaper version of the iPhone, and consumers seeking to upgrade their mobiles may favor the tried-and-true Blackberry name, and wallet-friendlier Blackberry price tag, over the pricey-and-unproven iPhone.
It's an interesting theory, especially in light of the fact that Apple also appears on the list of stocks hitting new annual highs today. (That terrible noise you hear is the sound of Mark Fightmaster's teeth grinding.) However, it's true that RIMM has strong technicals to back up today's surge. The shares received a boost upwards from a bullish cross of its 10-month and 20-month moving averages last August, and has maintained its position above those ascending trendlines since. Support at the 120 level has also held firm since late last year.
With 13 "hold" rankings from various brokerage firms, RIMM also has a lot to gain from potential upgrades. Look for RIMM to rise again if Apple's latest "i-" offering fails to captivate consumers.
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