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A Possible Swan Song For RIMM

|Includes: BlackBerry Limited (BB)

Those who rushed to proclaim the imminent demise of Research in Motion, are probably puzzled by the fact that the stocks have skyrocketed since September. It was at the end of the month when RIMM stock hit rock bottom with prices standing at $6.49 per share and since then they've more than doubled their worth. Finding an explanation for this unexpected surge is not that difficult, and the answer can also serve as an investment advise for binary options traders.

Shadow of a SmartPhone

For starters, the prices went downhill simply too fast and based mostly on consumer sentiment rather than cold facts. Granted BlackBerry is only a shadow of the smart phone that fascinated millions of consumers a couple of years ago, the latest installments were not bad at all. Speaking of which, the announcement that Research in Motion will release the BlackBerry 10 smartphone on time, also helps their stock soar.

Binary options traders who sensed value in the underpriced stocks back in September, shouldn't grow overconfident because there was an additional reason for why RIMM gained so much worth in three months. Research in Motion announced losses, but the fact that they were milder than what the specialists predicted, led to an immediate spike in consumer confidence. It is important to keep in mind that the company is still bleeding cash, and the sudden revival is not something to count on.

What Will Happen when the Flagship is Released?

Binary options traders who are willing to back RIMM should make sure that they can lose their positions by January 30, 2013 or immediately after that date. What goes around comes around and since it is most unlikely for BlackBerry 10 smartphones to sell like hot cookies, the stocks can plunge once again after the flagship phone is released. No matter how good the latest installment will be compared to the previous BlackBerry versions, it will have a nearly impossible mission of winning back customers.

The number of BlackBerry fans is constantly decreasing and most of those who already use Apple, Samsung or even Nokia smart phones have no intention of switching to BlackBerry. With a tiny market share that is constantly shrinking, it is quite possible that this surge in stock price is nothing more than a swansong for Research in Motion. As far as binary options traders are concerned, this shouldn't be a problem because a lot of money can be made by betting on another major slide for RIMM.