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Analysts Not Worried By Sudden Drop in RIM Share Price

3:30 pm on April 12, 2007 | Category: Business, Corporate, Mobile Devices

Research In Motion shares declined more than 8% today on the Toronto Stock Exchange after the BlackBerry maker reported solid yet unspectacular fourth-quarter financial results.

RIM announced late yesterday that it had generated a quarterly profit of $187.9 million, or $0.99 per share, roughly in line with earlier estimates.

Most analysts are characterizing today’s sell off, which saw RIM shares drop $14.31 to trade at $152.15 on the TSX, as a trivial, short-term reaction from shareholders that expected another breakaway quarter.

“We believe that RIM’s opportunity for strong growth remains entirely intact and that their ability to execute also remains intact,” explained Paradigm Capital analyst, Barry Richards, in a note to clients. “Relative to expectations, these results will disappoint some, but in absolute terms, the performance has been spectacular and there is no reason we think that will change going forward.”

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