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Pros: Does RIM’s Whoosh Lower Make it a Value?

On Friday CNBC's Fast Money traders were taking a long hard look at Research In Motion which dropped sharply after disappointing earnings.

RIM bulls such as Fast trader Pete Najarian think the sell-off presents an opportunity. He braved the waters and stepped in, citing the company’s plan to grow overseas market share as well as its plan to transition operating systems.

Over the next year, the QNX software will replace the traditional BlackBerry operating system, ushering in what RIM Co-CEO Jim Balsillie describes as a new class of “super phone.”

Although RIM warned of weak profit and revenues in the short term they provided full year guidance that was well above Street expectations.

The rosy outlook was in part due to optimism about the the new PlayBook tablet, expected to launch next month.

”I’ve seen projections start to move from 2 million to 3-5 million. That would be pretty major, Najarian says. In other words, the pain surrounding the PlayBook launch would set the stage for long-term gain.

Host Melissa Lee adds the bull case for RIM is only valid if you buy into their projections. And she says a whole lot of Street isn't buying.

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For example, Bank of America cut the rating on the stock from Buy to Neutral saying, "We basically disagree with almost everything management stated on their call and believe margins will continue to decline."

Dan Niles of Alpha One is also bearish. He’s short RIM and calls it a structural short.

In addition to being skeptical of RIM estimates, he also thinks RIM’s move into emerging markets means lower prices and lower margins. And he doesn’t think RIM will have apps that come close to those offered by rival Apple. (*It’s worth noting a published report says the PlayBook will run Android apps giving PlayBook users access to 200,000 more apps)

If you’re in the same camp as Niles, don’t run out and short RIM right away. Instead he says, “Let the value players come in and let it go up then reinitiate a short.”

Fast trader Steve Grasso isn’t bullish either. “Technically it could trade down to 53.5 and that’s a long way from here.

Contrarian trader Steve Cortes is, as you might imagein, on the other side of the trade. "I'm long," he says. “I think the risk reward makes sense,” he says. “Look for a flip.”

What do you think? We want to know!



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THE ORACLE TRADE

Elsewhere in tech, the traders also had Oracle on the radar after the company issues strong numbers for its new software licenses

The results fueled hopes that a global resurgence in technology spending remained intact.

Pete Najarian is also focused on the margins. “They're really are clicking on all cylinders now,” he says.


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Trader disclosure: On Mar. 25, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian Owns (AAPL). Pete Najarian Owns (TCK). Pete Najarian Owns (GE). Pete Najarian Owns (C). Pete Najarian Owns (AKAM). Pete Najarian Owns (BIG). Pete Najarian Owns (HPQ). Pete Najarian Owns (MS). Pete Pete Najarian Owns (HK). Pete Najarian Owns (KEY). Pete Najarian Owns (PFE). Pete Najarian Owns (TEVA). Pete Najarian Owns (UNP) Calls. Pete Najarian Owns (ADM) Calls. Pete Najarian Owns (BTU) Calls. Pete Najarian Owns (CNX) Calls. Pete Najarian Owns (CVS) Calls. Pete Najarian Owns (HUN) Calls. Pete Najarian Owns (ICO) Calls. Pete Najarian Owns (MYL) Calls. Pete Najarian Owns (RIMM) Calls. Pete Najarian Owns (WNR) Calls. Pete Najarian Owns (XLF) Calls. Pete Najarian Owns (BAC) Calls. Steve Grasso Owns (AMD), (ASTM), (BAC), (BAC), (C), (CSCO), (D), (JPM), (LIT), (LPX), (MHY), (MU), (NDAQ), (PFE) and (PRST). Steve Cortes Owns (TM), (GS), (CSX), (SDY), (EXC), (SO) and (RIMM). Steve Cortes Is Short (F). Steve Cortes Is Short (BAC). Steve Cortes Is Short (UNP). Steve Cortes Is Short (DBA). Steve Cortes Is Short Silver. Steve Cortes Is Short Wheat. Steve Cortes Is Short Soybeans. Steve Cortes Is Short Natural Gas. Steve Cortes Is Short Euro. Steve Cortes Is Short Yen.

Comcast Is The Parent Company Of CNBC
Comcast Is The Parent Company Of NBCUniversal
GE Owns 49% Of NBCUniversal
GE Owns 49% Of CNBC

PATTY EDWARDS
Edwards Owns (SPY) For Clients
Edwards Owns (QQQQ) For Clients
Edwards Owns (ORCL) For Clients
Edwards Owns (GLW) For Clients
Edwards Owns (QCOM) For Clients
Edwards Owns (AAPL) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (XLB) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (SLV) For Clients
Edwards Owns (POT) For Clients
Edwards Owns (AKAM) For Clients

STEVE GRASSO
Stuart Frankel & Co. And Its Partners Own (CSCO)
Stuart Frankel & Co. And Its Partners Own (CUBA)
Stuart Frankel & Co. And Its Partners Own (GE)
Stuart Frankel & Co. And Its Partners Own (GERN)
Stuart Frankel & Co. And Its Partners Own (HPQ)
Stuart Frankel & Co. And Its Partners Own (HSPO)
Stuart Frankel & Co. And Its Partners Own (MSFT)
Stuart Frankel & Co. And Its Partners Own (NYX)
Stuart Frankel & Co. And Its Partners Own (PFE)
Stuart Frankel & Co. And Its Partners Own (PRST)
Stuart Frankel & Co. And Its Partners Own (SDS)
Stuart Frankel & Co. And Its Partners Own (UAL)
Stuart Frankel & Co. And Its Partners Own (XRX)
Stuart Frankel & Co. And Its Partners Are Short (QQQQ)
Stuart Frankel & Co. And Its Partners Are Short (AAPL)

DAN NILES
Alpha One Capital Partners Owns Accenture
Alpha One Capital Partners Owns (ORCL)
Alpha One Capital Partners Is Short (RIMM)

Late additions:
Edwards owns (BMY) for Clients
Edwards owns (ERF) for Clients
Edwards owns (EXC) for Clients
Pete Najarian owns (PFE)
Pete Najarian owns (F) bonds

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