Monday, January 03, 2011

Looking Through a Bull's Eyes

By Eric Jackson
RealMoney Contributor

12/28/2010 7:30 AM EST
Click here for more stories by Eric Jackson

An epic debate has been raging for the last six months between the bulls and the bears on Research In Motion (RIMM - commentary - Trade Now). I am decidedly on the bear side, but I acknowledge that there are good arguments on both sides.

The debate is reflected in the variance in price targets on the company. They range from $35 to $130.

The stock is back to $58, after getting up to the low $60s in recent weeks (prior to the most recent earnings release).

That earnings call was unique because it didn't result in an instant 10% (plus or minus) move in the stock. For once, the bulls and bears found equal amounts to chew on in the results and the stock was basically flat -- though it's dropped a few percentage points since then.

I believe that anytime an investor has a strong view on a stock, they should vet it by talking with someone who sees things from the complete opposite perspective.

So, last week, I called George Papageorgiou of Scotia Capital. George is the one who has the $130 price target on Research In Motion. I asked to chat with him, making it clear that I had a short position in the company.

He got back to me right away, willing to talk, which made me like him. What I also like about him is that he's got a bold call. He's not like 85% of analysts who like to stay within 10% to 20% of a stock's price and say nothing controversial. George is letting it ride with $130.

Another positive for George is that this has been a call of his for over a year now for the stock. He's sticking to his guns here.


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