Analysts and investors have started to get jittery over the rise in the shares of Research In Motion Limited (USA)(NASDAQ:RIMM) and feel that it may be time to exit from the stock.
Shares in the Canadian handset maker have been rising due to the positive buzz that has been generated around its new operating platform Blackberry 10, but analysts fear that waiting too long would dispel the `feel-good' sentiment and that it would be better to take their profits now.
The new BB10 operating system will see the light of day in January next year. Meanwhile the stock has already doubled from the $6 lows that it has seen. Investors are clearly wondering - where to now?
On Monday, Mike Walkley, analyst with Canaccord, cut his rating on the stock to Sell from Hold, asserting that the recent run in the shares were without merit and the stock lacked support.
Wall Street is just sceptical about the run that the stock had seen and while the street feels that RM has got a good thing in BB10, whether that it enough for a further rally.
The main argument against RIM is that the company is not functioning in an isolated environment. There is too much of competition all around.
Microsoft is aiming to be the third big player after Android and Apple and its recently released Windows Phone 8 seems to have all the makings of a winner.
RIM s banking on the fact that the on-going spat between Apple and Samsung may swing customers towards other operating systems such as Blackberry.
"From that standpoint, RIM has a decent shot at capturing market share; except it won’t be nearly enough to matter, “Motley Fool's Richard Saintvilus said.