Would You Buy RIM Stock Right Now?

Research In Motion's stock is trading at seven year lows and one former Goldman Sachs asset manager is about to buy up plenty of RIM Blackberry stock.


Leon Cooperman is a billionaire and former asset manager at Goldman Sachs who also founded the Omega Advisors hedge fund is the latest to bet on RIM having some type of rebound.

Is it prudent to look to a man who has acquired a billion dollars as us normal folks figure out how to get our stock portfolios back to previous levels?

Only time can tell but Mr. Cooperman gives two reasons for investing in RIM stock as others flee the Blackberry brand.

Foremost, RIM's new QNX operating system is promising, "People think (RIM) is a melting icecube," Cooperman told Bloomberg. "We think the new operating system is going to surprise people."

Secondly, is the possibility of a merger. "Why do people buy stock," Cooperman observed. "They buy a stock because they think it is undervalued. The merger values is worth more than the market value."

Mr. Cooperman has some very interesting remarks and if he does pull off a profit there are going to be many people kicking themselves for not jumping on the RIM stock bandwagon while the prices were extremely low.

But everything must be placed into context and perspective. RIM's shares fell below book value this month and also lost 1.8 million subscribers in the last quarter. Therefore, many are questioning why would Omega Advisors go and buy 1.4 million shares of RIM stock.

Read via AllThingsD

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Smartphone News Blog.