Event: Struggling mobile device maker Research in Motion (NASDAQ: RIMM) said Monday that it will unveil its Blackberry 10 operating system, a critical product, on on Jan. 30, 2013. Research in Motion said it will provide details on two new Blackberry smartphones, including details on pricing and availability to retail customers, but did not give any indication of the date sales of the new products will start. Shares of Research in Motion were up 3% in early trading on Monday.
Analysis: The Blackberry 10 might be a make-or-break product for Research in Motion. Shares have been absolutely pummeled as the relevancy of the company fell far behind upstarts Apple and Samsung. The selling in shares of RIMM brought the valuation of the company to what many believe is the net value of Research in Motion patents. I’m not sure those patents have any value. Given the very public battle over patents between Samsung, Apple and Google, it would seem these companies have the technology bases covered, patent-wise. As for the product launch, I’m stunned any investor would think Blackberry can compete in the current market, no matter the new gimmicks offered in the new product. This is a stock that can be reliably sold on every bounce. Considering the overall state of the market, RIMM is tradable on the short side for short-term gains.
Action: Sell RIMM short on any rallies like the one we are seeing today.
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