Blackberry’s position threatened: Barron’s

NEW YORK: Research In Motion, which makes the popular BlackBerry wireless e-mail device, has seen its revenues accelerate and its stock price triple since last September, but the stock is expensive relative to earnings and revenue, reported Barron's.

RIM's outlook is threatened by patent infringement battles with Good Technology and NTP, while the BlackBerry faces stiff competition from devices such as the Treo 600, made by Handspring, which is soon to be acquired by Palm Inc. Dell Inc. also plans to offer a line of e-mail compatible devices early next year, Barron's said.

Waterloo, Ontario-based RIM, the dominant player in wireless e-mail, expects revenue to continue rising in the second half of this year and is positioned to benefit from new handset sales and the introduction of improved "2.5G" wireless communications networks, Barron's said.

But the magazine said that sales by insiders, is another cause for concern. Canadian securities filings showed 17 insiders sold a total of more than 200,000 shares of stock, including co-Chief Executive Mike Lazaridis.

In Friday trade on the Toronto Stock Exchange, RIM shares fell 16 cents to C$39.36. In the past year, the stock has traded between a high of C$42.41 and a low of C$13.19

© Reuters