RIM Stock Rises on Encouraging News

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2:58 pm on December 22, 2005 | Category: Business

Research In Motion, Ltd. had an extremely good day on the stock markets today, jumping over 10% on news of higher profits, and a possible end to the patent dispute with NTP.

RIM’s stock price finished the day at C$79.91 on the Toronto Stock Exchange, a huge gain over yesterday’s close of $72.50.

Even though the company’s subscriber addition forecasts for next quarter were slightly lowered, profits were significantly higher than expected over the past few months. This is extremely encouraging news for investors, especially when combined with the fact that NTP’s patents, which they are using as the basis of a lawsuit against RIM, are likely to be invalidated in the near future.

Although this news about the patents won’t immediately put an end to RIM’s legal problems, it is definitely encouraging news for their shareholders.

The fact that RIM has managed to hold out through this difficult time, and that things may become less difficult in the near future, is attracting investors to RIM, like bees to honey. Whether RIM will be able to maintain these new levels, or if a correction is in order, will be interesting to see.