Shares of RIM traded higher on Monday after published reports suggested Saudi Arabia was close to reversing a proposed ban on BlackBerry services.
According to AP, RIM agreed to place BlackBerry servers inside Saudi Arabia and allow the government to monitor messages. Saudi security officials claim the move is critical so the service isn't used by militant groups, however critics argue the government is only trying to further curb freedom of expression.
Meanwhile, the latest web chatter suggests that other nations which have expressed similar concerns including India, Indonesia and the United Arab Emirates may also agree to similar resolutions.
What's the trade?
Instant Insights with the Fast Money traders
I think RIM was oversold on the news, says Pete Najarian. With a 10 P/E I like this name. RIM should reach much higher levels. And I can't help but wonder if some larger company would ever have an interest in Research In Motion?
I agree that from a P/E ratio standpoint it seems like an attractive value play, adds Jared Levy but the BlackBerry just isn’t sexy. I was expecting a work of art in the new BlackBerry Torch but it wasn't there. With Android and iPhone making gains, I'm concerned about being long RIM outright. However, I see some potential so I’d buy the stock and sell calls against it.
At a 10 P/E I’d also give RIM some grace, adds Patty Edwards. There are a lot of other names they could kill - such as Nokia .
I like RIM for technical reasons, says Steve Cortes. It appears to be basing. At the same time Apple seems to be topping out.
I’d be taking profits on Apple and putting that money to work in RIM.
MYSTERIOUS DROP IN EURO
On Monday the traders were keeping a close eye on the euro which dropped sharply.
What's the trade?
I’m getting skeptical of the euro, says Steve Cortes. We were too pessimistic a few weeks back and now it looks like we’re too optimistic.