RESEARCH IN MOTION LTD. $12 - Toronto symbol RIM

RESEARCH IN MOTION LTD. $12 (Toronto symbol RIM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 516.4 million; Market cap: $6.2 billion; Price-to-sales ratio: 0.4; No dividends paid; TSINetwork Rating: Above Average; www.rim.com) has gained over 96% since it fell to $6.10 on September 24, 2012.

That’s mainly because the company confirmed it will launch smartphones that use its new BlackBerry 10 software on January 30, 2013. These devices will help RIM compete with Apple’s (Nasdaq symbol AAPL) iPhone and phones powered by Google’s (Nasdaq symbol GOOG) Android software. The U.S. government has also approved BlackBerry 10 software for use by its agencies. This will help RIM hang on to its current government clients.

However, slowing demand for RIM’s current phones continues to hurt its earnings. In its fiscal 2013 second quarter, which ended September 1, 2012, RIM lost $0.27 a share (all amounts except share price and market cap in U.S. dollars). A year earlier, it earned $0.63 a share.

Revenue fell 31.1%, to $2.9 billion from $4.2 billion. Even with this decline, RIM ended the quarter with 80 million subscribers worldwide, up from 70 million a year earlier.

RIM’s balance sheet remains strong: it has no debt and holds cash and investments of $2.3 billion, or $4.54 a share.

RIM is a hold.

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