We are running late today because we wanted to see how the Fed statement goes.
Shares of Research in Motion (RIMM, $14.67, down $0.99) have been on fire this month and we mentioned at the beginning of the year at $12 they were undervalued. They may still be if their new phones are a hit with consumers.
The company has been behind the 8-ball to get a new smartphone to market and their new models, the Z10 and the Q10, are slick and innovative. The main difference will be the keyboard as the Z10 is a touch model while the Q10 is old school RIMM.
With change, RIMM decided on a new name for itself and will now be known as BlackBerry and will trade under the ticker symbol “BBRY” starting next Monday.
Shares made a run past $18 last week and this is clearly a “sell the news” event. We would love to see shares come back down to the low teens where we would consider half positions but we doubt they get back down to $12. We will do some follow-up research to our January 6 article in the Weekly Wrap and dig deeper into the story and what this transition could mean for the company and its 70 million subscribers.
Elsewhere, ADT Corp. (ADT, $48.94, up $2.43) is getting a nice pop following the release of its earnings before the opening bell this morning. Shares have traded to a fresh 52-week high of $49.16 after the company posted higher year-over-year profits and sales. (continued…)
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