RIM could be a new bubble

If losing money in the Facebook IPO were not enough, it appears that investors are rushing to lose a fortune on the train wreck which is RIM.

Reuters is reporting a sudden wave of optimism that RIM’s re-engineered BlackBerry line will actually pay off. Goldman Sachs raised its rating on the smartphone maker, setting off a surge in its share price.

Goldman Sachs is just one of many which suddenly think that RIM might make a lot of money out of its BlackBerry 10 devices. BB10 devices are expected to hit store shelves early next year after delays, although there are fears that it might be out of date by the time it appears and there could be a lack of apps.

However, optimism is creating a stir on the company’s share price, particularly after the prototype phones started to get the thumbs up from telecom carriers and developers.

Even Jefferies analyst Peter Misek, who has been one of RIM’s biggest critics, raised his rating and price target on the stock.

In a note to clients, Goldman analyst Simona Jankowski said preliminary specifications that have emerged on the BB10 devices appear impressive.

Jankowski said she believes more applications will be available for BB10 than had been expected. This is because BlackBerry users typically download a relatively high number of paid apps, which is an enticement to app developers.

After her comments, RIM’s shares had jumped up more than six percent on the Nasdaq to $11.78.

The company has a long way to go. Its shares have fallen 90 percent from a 2008 high of more than $148. However, they have increased significantly over the last two months as the launch date gets closer.

So far, one of the few who have expressed doubts that RIM can turn itself around is Wedge Partners analyst Brian Blair who warned that rising expectations for the BB10 in 2013 have provided false hope for investors.

He said that the run-up in the stock miscalculates the reality of consumer demand for BB10 next year.

Blair said that RIM is not only late to the party, the party has moved to a different location and RIM is showing up at the wrong house. He should have added that not only having shown up at the wrong house, it was trying to seduce the owner of the house and threw up on the dog. We prefer our metaphors to be not just mixed, but whipped until they are stiff and have peaks on the top.