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Citi Investment analyst advises you keep buying RIM stock

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buy-stocks-now

Analysts are saying that RIM’s shares will come under pressure as new devices are being launched by the competition. The Palm Pre, Android and iPhone updates are going to force RIM to feel some competitive heat, but in general, investors aren’t worried.

“We expect RIM shares to face trickier waters over the next few weeks,” Citi Investment Research analyst Jim Suva wrote in a note to clients this week.

He advised clients to remain buyers of the stock with a $100 target price.

“Near-term events aside, we think RIM is on right side of changing handset industry dynamics,” he wrote.

RIM shares were 1.3 percent higher at $83.21 on Nasdaq. In Toronto, they inched 20 Canadian cents higher to C$89.76.

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Balsillie and Lazaridis charitable donations protected by ASDPs

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RIM co-CEO Jim Balsillie

Both Jim Balsillie and Mike Lazaridis are incredible philanthropists. Their contributions to the social sciences, sciences and academia have really helped advance our understanding of this world. These philanthropic ventures require an incredible amount of cash and equity on a regular basis in order for these ventures to succeed as planned.

Recently, RIM’s executives Jim and Mike adopted what are called Automatic Securities Disposition Plans or ASDPs. ASDPs are plans that will allow Jim Balsillie and Mike Lazaridis to sell shares of RIM at a predetermined interval, regardless of whether or not they are under a “blackout” period. A “blackout” period, would include such times as when quarterly financial reports are released. Normally, an executive would be barred from selling shares during a financial report release, due to concerns over insider trading and how their selling of shares would affect the market.

WIth the ASDPs in place, charitable foundations will be able to rely on the vast amount of funds being sent their way from RIM’s top executives. One example of this includes Jim Balsillie’s weekly share donations of up to C$100 million over 24 months to a charity he founded. Balsillie will also donate another C$57 million of shares to the Center for International Governance Innovation (CIGI), an Ontario-based think tank. Co-CEO Mike Lazaridis is matching Jim Balsillie’s contributions with about C$190 million over 22 months to his charitable foundation.

To learn more about ASDPs and how they affect trading regulations, see Gowlings.

Click through to read the official press release regarding the adoption of new ASDPs

Goldman Sachs backs RIM stock and shares rise

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Shares of RIM rose after a Goldman Sachs analyst said she would buy the stock in advance of its fiscal fourth-quarter report, which is scheduled for April 2. Shares rose $1.89, or 4.6 percent, to $44.87 in afternoon trading.

In a note to clients, Goldman analyst Simona Jankowski kept her “Buy” rating and $57 price target for the stock, predicting RIM will meet fourth-quarter and first-quarter guidance – something she thinks will help its shares.

Although RIM has said that its fourth-quarter earnings will likely come in at the low end of its forecast range, which had called for 83 cents to 91 cents per share, the news will surely help shares regardless.

RIM is also predicting that revenue will be at or near the midpoint of its earlier projection, which was for $3.3 billion to $3.5 billion.

Goldman Sachs aren’t the only people backing RIM either. Analysts polled by Thomson Reuters are expecting a profit of 85 cents per share on $3.42 billion in revenue.

[Via]