AAPL Moves On RIMM: July 2012

from <B> Marketsurfer's Time Machine </b> You heard it here, first......




July 13, 2012: Research In Motion’s (Nasdaq:RIMM) shares have been trading on a flat line at $4.50 for the last several weeks. Even the most diehard supporters of the company have jumped ship after Playbook version 4 failed to live up to expectations. Cheap Asian knock offs of the Blackberry are being given away on every street corner in exchange for the consumer’s name and e-mail address.

Despite aggressive marketing and corporate restructuring, the once mighty kingpin of the smartphone era appears destined to quickly fall into penny stock territory then cease to exist completely. It’s now 3:45 PM EST, traders notice, the almost forgotten RIMM starting to gather unusual volume and trading several ticks above the tight channel. Jim Cramer who has taken over the closing spot on the struggling CNBC business TV channel in an effort to attract viewers, literally jumps out of seat, screaming, “Apple (Nasdaq:AAPL) has made a hostile bid to takeover RIMM!!” The price of the once forgetting smart phone stock starts clicking higher, making $2 jumps at a time, as investors pile into the stock trying to catch a piece of the action prior to the deal being consummated.

Is this just a dream or a very real future possibility? Well, it may not be as far fetched as you think at first glance. RIMM has a market cap of $20 billion which may seem like a lot, but compared to Apple’s $300 billion plus market cap, RIMM’s a tiny minnow. However, RIMM has control over the corporate e-mail and messaging market, a sector Apple has failed to capture despite its vast strength. Owning this segment would provide Apple the edge it needs to compete against Google’s (Nasdaq:GOOG) Android platform and Microsoft’s (Nasdaq:MSFT) Window’s Mobile offerings. This is a huge market thus could easily put Apple light years ahead of its nearest competitor. With RIMM’s price spiraling downward, it may quickly reach the point where a takeover makes perfect sense. Be ready for anything! Good Trading!