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To: Johnny Canuck who wrote (41007)	4/9/2004 12:52:13 PM
From: Johnny Canuck	Respond to of 70677

Despite strong earnings, RIM stock falls Last modified: April 8, 2004, 2:03 PM PDT By Reuters Shares of Research In Motion fell 5 percent Thursday despite the strong profit and outlook posted by the maker of the BlackBerry e-mail device, as some called the company's stock overpriced. Waterloo, Ontario-based RIM fell as low as $102.12 on the Nasdaq on Thursday morning before bouncing back to $104.76, for a loss of $3.22, or 3 percent. On the Toronto Stock Exchange, RIM was off C$2.61, or 1.85 percent, at C$138.55. "The results are at the high end, but they weren't wildly past the high end of guidance, which is what we have seen in the last couple of quarters," said Barry Richards, an analyst at Paradigm Capital. "Like a lot people, I am a little surprised. Maybe it can be explained in the run-up in advance of the results." RIM's stock, which has risen more than 500 percent since this time last year, hit its highest level since 2000 ahead of the release of its fourth-quarter results on Wednesday after market close. The company also announced plans for a two-for-one stock split. RIM said its fourth-quarter sales more than doubled, paced by sales of its popular flagship BlackBerry wireless device, allowing it to report a stronger-than-expected fourth-quarter profit and up forecasts for the first quarter of fiscal 2005. As a result, several analysts raised their own forecasts and their price targets for RIM stock. CIBC raised its 12- to 18-month share price target on RIM from $115 to $150, or about 30 times its earnings per share estimate for fiscal 2006. The brokerage has a "sector outperformer" rating on the stock. Scotia Capital reiterated its "1-sector outperform" rating on the stock and raised its fiscal 2005 earnings estimate. ThinkEquity Partners maintained a "strong buy (1)" rating on the stock and raised its share price target to $137 from $100, or about 35 times its earnings per share forecast for fiscal 2006. Bear Stearns maintained its "peer perform" rating on the stock and raised its fiscal 2005 earnings estimate. "The forward view of the company is extremely strong, and they remain a marquee name in the wireless data space," said Michael Abramsky, analyst with Canaccord Capital. "The fundamentals are absolutely in line in what we are looking for." RIM said it now expects revenue in the first quarter to be in the range of $250 million to $265 million with earnings per share, after the stock split, in the range of 21 cents to 26 cents, or 28 cents to 33 cents adjusted. That's up from the revenue of between $220 million and $240 million it forecast in December, and from its earnings per share estimate, before the split, of 50 cents to 65 cents adjusted. The company forecasts second-quarter revenue of between $270 million and $290 million and earnings per share of 24 cents to 29 cents, or 32 cents to 37 cents adjusted.