RCN reference at bottom.
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Research In Motion stock extends gains to new peak
TORONTO, Aug 23 (Reuters) - Research In Motion Ltd. <RIM.TO> <RIMM.O> shares extended their rally to new highs on Monday, fueled by momentum and praise for a deal to sell its e-mail pagers to people on Main Street as well as on Wall Street.
The Waterloo, Ontario-based company's stock hit an all-time pinnacle of C$48.20 on the Toronto Stock Exchange before shedding some gains. It was up C$2 to C$47 in early afternoon trading. On Friday, the stock hit C$45.45.
Nasdaq shares rose $1-1/2 to $31-3/8 on Monday.
Analyst Brian White at SG Cowen said "probably just continued momentum" kept the stock rolling upward on Monday. Friday's gains were spurred by a slew of reports by North American analysts who were busy cheering a week of good news for Research In Motion, referred to as RIM.
Often when issues hit all-time highs, momentum players get involved, White noted. Also, "there will probably be good things in the pipeline" for the company, he said.
A highlight of last week's news was RIM's deal with a U.S. Internet service provider, Princeton, N.J.-based RCN Corp. <RCNC.O>
RCN is making RIM's palm-sized pager with tiny keyboard and screen -- to send and receive electronic mail and other messages -- available to its 500,000-plus subscribers through their existing accounts, a first in the U.S.
That thrust is a departure from RIM's usual target crowd of corporate wheelers and dealers, said analyst Michael Urlocker at Scotia Capital Markets.
"I think there's substantial, new, positive developments, and maybe other people do as well," said Urlocker, who had put out a note on the stock on Friday. By appealing to a broader market, RIM could expand its own customer base, he added. |
