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Buy RIM On The Pullback After Earnings Miss?

In the after market shares of RIM fell as much as 7% after the BlackBerry maker reported a profit that fell just shy of Wall Street expectations, despite a growing subscriber base and rising phone shipments.

RIM said it earned $1.27 a share in its fiscal fourth quarter, excluding one-time items, compared with a profit of 90 cents a share last year.

Sales for the most recent quarter hit $4.1 billion, up from $3.463 billion this time last year.

Of particular note, RIM says it added nearly 5 million net subscriber accounts in the quarter, bringing the total to more than 41 million.

Strategy Session with the Fast Money traders

With RIM near $70 I think the stock is a buy, says Pete Najarian. I think the company has a great deal of potential going forward especially in emerging markets.

If the stock pulls back to $67.50 on big volume on Thursday, I would also be a buyer, echoes Guy Adami. Just close your eyes and dive in.

Historically, the best way to play RIM post earnings has been to fade it, he explains on the Halftime Report. If it collapses, be a buyer -- and if it rips, put on a bearish position.

I want to know how they plan to grow, says Tim Seymour. It seems to me America and Europe are pretty well saturated. But I’d keep going long in this name. There's great potential in EM.

48% of RIM's revenue now comes from outside North America, says CNBC's Jim Goldman. But to say any part of the smartphone market is saturated - I just don't see it.

As a derivative trade, I’d look at Crown Castle , says Brian Kelly. They own transmission towers needed for wireless communication.

I also like the towers and I’ve looked at rival American Tower but right here valuations are rich, muses Karen Finerman.

If you want a derivative trade look at Marvel or Broadcom , adds Pete Najarian. I like the chip makers as a down stream trade.

> Click here for complete coverage of RIM earnings

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STOCKS JUMP 5% THIS QUARTER

Investors booked profits in the S&P 500on Wednesday as the first quarter of 2010 drew to a close; by the end of trading the market had racked up its fourth straight quarterly advance.

The first-quarter gains for the major indexes are: Dow, up 4.1 percent; S&P 500, up 4.9 percent, and Nasdaq, up 5.7 percent.

For the month of March alone, the Dow rose 5.1 percent, the S&P 500 rose 5.9 percent and the Nasdaq gained 7.1 percent.

Can the market continue it's steady climb higher? What variables could generate big headwinds?

I expect to see rates go higher, says Miller Tabak strategist Peter Boockvar. That could be a headind. Also sovereign risk and the Fed unwind are two other headwinds facing this market.

Considering the environment, I’d be in commodities, hard assets and part of the world that would be immune to our rising interest rates such as Asia, he counsels.

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STREET FIGHT: HOT TRADE FOR NEXT QUARTER?

If you watch Fast Money regularly you might have noticed that there's a Street fight brewing over global growth stocks

We’re talking coal, iron and rails.

Pete Najarian loves them going into the second quarter, but Tim Seymour thinks they're getting rich.

On Wednesday the desk took a closer look at Cliffs Natural Resources.

How should you trade?

I love Cliffs , says Pete Najarian. I still believe in the coal names and despite gains I believe this stock has room to the upside.

But Cliffs is trading at 43 times current earnings, counters Tim Seymour. I’d get out of this stock -- it’s run too far too fast.

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THE OBAMA TRADE: DRILLING

We’ve got a pair of Obama trades coming your way.

First, drillers such as RIG moved higher on Wednesday after the President announced new off-shore drilling plans.

What’s the trade?

If you’re looking for a trade I’d look at Diamond Offshore, says Tim Seymour.

Or take a look at Rowan, adds Pete Najarian

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HEALTH CARE WRITE DOWNS

And in Obama news -- more and more companies are announcing "write-downs" on losses due to health care reform. And for a bill that was supposed to cut medical costs, the totals are in the hundreds of millions.

Take a look:

S&P 500 Companies With Highest Health Care Bill Related Charges
AT&T $1bln
Deere $150 mln
Boeing $150 mln
Caterpillar $100 mln
Prudential $100 mln
Source: Birinyi Associates

What must you know about this new development?

Find out from Daniel Clifton of Strategas Research. Watch the video now!

* You can find our interview with Clifton toward the end of the video.



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Trader disclosure: On March 31st, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (INTC), (GS), (AGU), (MSFT), (NUE), (BTU), (C); Seymour Owns (AAPL), (BAC), (GE); Najarian Owns (BAC) Calls; Najarian Owns (C) Calls; Najarian Owns (CLF) Call Spread; Najarian Owns (IPI) Call Spread; Najarian Owns (JDSU); Najarian Owns (NSC) Calls; Najarian Owns (RDC) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (SWN) Call Spread; Najarian Owns (WFR) Call Spread; Najarian Owns (YHOO) Call Spread; Finerman's Firm Is Short (IYR), (IWM), (MDY), (SPY); Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BSX); Finerman's Firm And Finerman Own (JPM); Finerman's Firm Owns (MUR); Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Owns (YUM); Edwards Owns (GLD) For Clients; Edwards Owns (TM); Edwards Owns (UUP); Kelly Owns (FXE) Puts

GE Is The Parent Company Of CNBC

For Tim Seymour
Seygem Asset Management Owns (POT)
Seygem Asset Management Is Short (FCX)

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (SPY)

For Brian Kelly
Kanundrum Capital Owns (GFI)
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns (RAX)
Kanundrum Capital Owns (RBA)
Kanundrum Capital Owns (CCI)
Kanundrum Capital Owns (MON)
Kanundrum Capital Owns (RRC)
Kanundrum Capital Owns (UPL)
Kanundrum Capital Is Long U.S. Dollar
Kanundrum Capital Is Short (AA)
Kanundrum Capital Is Short (GS)
Kanundrum Capital Is Short (ACH)
Kanundrum Capital Is Short Yen
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short Pound
Kanundrum Capital Is Short Franc
Kanundrum Capital Is Short Treasuries

For Patty Edwards
Edwards Owns (SPY) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (F) For Clients
Edwards Owns (TM) For Clients
Edwards Owns (EXC) For Clients
Edwards Owns (CBI) For Clients
Edwards Owns (NE) For Clients
Edwards Owns (KO) For Clients

For Jared Levy
Peak6 Investments Is Short And Has An Options Position In (SPY)
Peak6 Investments Is Short And Has An Options Position In (QQQQ)
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Peak6 Investments Is Short And Has An Options Position In (ESV)
Peak6 Investments Is Short And Has An Options Position In (NE)
Peak6 Investments Is Short And Has An Options Position In (SU)
Peak6 Investments Owns And Has An Options Position In (F)
Peak6 Investments Owns And Has An Options Position In (TM)
Peak6 Investments Owns And Has An Options Position In (EXC)
Peak6 Investments Owns And Has An Options Position In (CBI)
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Peak6 Is Short And Has An Options Position In (ADM)
Peak6 Is Short And Has An Options Position In (RIMM)


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