Todd Harrison: Research in Motion (RIMM) rallied more than 11% yesterday on a report that it was weighing several options, including an outright sale of the company, before settling for an 8% gain. To quote the unconfirmed report that sparked the move higher:
“We have heard the company is looking for more than $10 billion for a full sale, likely somewhere in the $12 billion to $15 billion range, or between approximately $22.90 and $28.60 per share. RIM’s market capitalization currently sits at about $8.5 billion, though several analysts think that even $8.5 billion is more than an interested party would consider bidding at the moment.”
I’ve been involved in this stock since December 2011 given my sense that this once-noble brand would rise from the ashes after it was purged by fund managers into year-end. In fact, I offered last week that my antennae vibed move into the low to mid-twenties, although I had “nothing” by way of a legitimate edge (which is precisely the reason you always define your risk).
I’ve aggressively “traded around” this position, buying dips to sell blips, while keeping my ear to the ground. In fact, I bought more stock last week (in real-time on the Buzz), which gave me the ammunition to steadily feed the ducks (read: make sales) into this outsized move.
Read more: http://www.minyanville.com/businessmarkets/articles/todd-harrison-todd-harrison-minyanville-todd/1/18/2012/id/38891#ixzz1jreZaBsh
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