TORONTO (Reuters) – Research In Motion‘s U.S.-listed shares played catch-up on Friday, surging more than 13 percent after the Thanksgiving holiday to match some of the gains the stock posted Thursday on the Toronto Stock Exchange.
RIM’s Toronto-listed shares surged more than 17 percent on Thursday, after National Bank analyst Kris Thompson boosted his price target on RIM to $ 15 from $ 12. Thompson argued that there is money to be made in the stock ahead of the early 2013 launch of a make-or-break line of BlackBerry devices.
The Waterloo, Ontario-based company’s stock was by far the most actively traded stock on the Nasdaq on Friday, with trading volumes topping those of U.S. tech giants such as Microsoft Corp, Intel Corp and Facebook.
RIM shares rose 13.6 percent, or $ 1.40, to close at $ 11.66 in a shortened trading day in U.S. markets. The stock, also one of the most actively traded on the Toronto Stock Exchange on the day, pared some of its gains from Thursday to slip 38 Canadian cents to C$ 11.62 by 1500 ET.
The BlackBerry maker, a one-time pioneer in the smartphone industry, hopes its new line of BlackBerry 10 devices will rescue it from a prolonged slump and help it win back market share lost to rivals such as Apple Inc‘s iPhone and the slew of devices that run on Google Inc’s Android operating system.
Barry Schwartz, vice president and portfolio manager at Baskin Financial Services, believes that investors betting on RIM right now are speculating that the company can turn itself around, a tough task for any company in the ultra-competitive and fast-paced technology sector.
“It’s very hard for a technology company to turn themselves around. Apple did it years ago, Palm did a face plant. So you are buying the stock on hopes that the phone will do wonders,” said Schwartz, who does not have any positions in the stock at this time.
“You really have to be betting the farm that BlackBerry 10 is going to be the be-all and end-all in smartphones and encourage people to switch from Apple, Samsung or Android to switch back to BlackBerry,” he said.
(Reporting by Euan Rocha;editing by Sofina Mirza-Reid)
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RIM shares play catch-up on the Nasdaq; trim gains in Toronto
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RIM shares play catch-up on the Nasdaq; trim gains in Toronto
