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07.11.08: The report from Research in Motion (RIMM) a few weeks back seemed to be good. Why has the stock taken such a beating since then, and what strategies should be considered from here?

Although Research in Motion (RIMM) pre-announced very strong quarterly earnings, its guidance of the next quarter was not well-received by Wall Street. Specifically, RIMM raised its revenue guidance, but it lowered its profit forecast from 90 cents to between 84 and 89 cents per share. The company plans to ramp up its capital over the next two quarters.

There is no doubt that Research in Motion has to spend more money to compete with the new 3G iPhone from Apple (AAPL). RIMM is betting that two new handsets, the Bold and the Thunder, will ignite a new round of growth. The Bold, a BlackBerry device that uses speedier 3G wireless technology, has already delayed its June launch date. RIMM execs would not specify a specific launch time frame, only saying it will be released this summer, and in reality these phones aren't expected to be readily available until the third quarter.

Things are complicated right now, but I don't want to bet against either Research in Motion (the industry leader) or Apple (the upstart with the new 3G iPhone). And as I've told my Blue Chip Growth subscribers, RIMM is an outstanding near-term buy.

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