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As BlackBerry 10 phones near, hopes send RIM stock rising

Vague comment by RIM CEO on potential for BlackBerry technology licensing sparks rally

By , Network World
January 22, 2013 11:31 AM ET

Network World - Speculation, rumors, and hopes about the upcoming BlackBerry 10 launch next week have sent Research in Motion's (RIMM - Nasdaq) stock price soaring.

RIM's stock price has been languishing in the $11-$12 range on the Nasdaq exchange for weeks, after sinking to a low of $6.18 last September. That changed on Jan. 18 when it jumped to the $15-$18 range after Jefferies Group analyst Peter Misek upgraded his stock recommendation to "buy" from "hold," and his target price for the stock to nearly $20 from $13. This morning, the stock jumped quickly from $9.32 to a peak of $17.52, starting to dip after that.

BACKGROUND: RIM offers wider peek at new BlackBerry UI

Jefferies' shift, according to several published reports, was based on the firm's assessment that RIM will enable a range of BlackBerry features and services, including email, on other mobile platforms, specifically iOS and Android.

According to one website, Misek wrote: "This change we believe is unknown or not well understood but is important. In the future we think RIM will add bring-your-own-device sandboxing and BlackBerry Messenger (BBM) on Android and iOS."

The stock is likely to get another boost today as investors apparently are set to overreact to comments by RIM CEO Thorsten Heins in an interview published Monday in the German newspaper Die Welt [German language version online]. Yesterday, Canada-based RIM's stock price on the Toronto Stock Exchange jumped 15% after Heins was reported to have said that RIM's ongoing "strategic review" potentially could result in licensing RIM's BlackBerry 10 operating system and other software or selling its handset business.

According to Reuters, reporting on the Die Welt interview, Heins said, "The main thing for now is to successfully introduce Blackberry 10. Then we'll see."

But Heins has been saying the same thing since he took the helm at RIM a year ago and launched the internal strategic review of the company's options. And what he's saying is no more than "we're not ruling anything out."

When Reuters asked a RIM spokesman to comment on the Die Welt interview, his reply: ""We do not have anything new to report on our strategic review at this time."

Yet, as VentureBeat's Ricardo Bilton notes, the move to spin off hardware sales and license the OS "wouldn't make much sense." RIM's ability to mesh its own software and hardware, as Apple does, would be lost; and "there's not a single smartphone maker for which BlackBerry 10 would be an attractive option."

Next week, at multiple locations, RIM will unveil what is expected to be at least two new smartphones, the first to run the BlackBerry 10 operating system. The new OS, which is a complete break with the firmware that's powered all earlier BlackBerry phones, features a radically new UI design built atop the widely used QNX real-time operating system kernel, which RIM acquired in 2010. QNX is the basis for the OS used in RIM's PlayBook tablet, and that software will be upgraded to the production version of BlackBerry 10.

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