RIM’s New CEO Not a Reason to Buy, Pros Say

Research In Motion’s announcement of a new CEO on Monday did not win over shareholders — or the “Fast Money” pros.

“RIM has clearly got the image problem, and they also got themselves stuck behind the 8-ball. They haven’t kept up with the iPhone,” said trader Pete Najarian.

Calling the company’s global growth “very, very impressive,” Najarian also said the new chief executive would have to explain how RIM would be different going forward.

Research In Motion shares closed down 8.47 percent at $15.56 on news that the company selected Thorsten Heins to replace co-CEOs Jim Balsillie and Make Lazaridis.

But the “Fast Money” experts took issue with Heins’s assertion that RIM was “not a turnaround company.”

Vic Albioni of Jaguar Financial, which owns less than 10 percent of the company, criticized the decision to stay the course.

“That sounds too much like the former co-CEOs handpicking a successor to stay the course, and the board just going along with the change to bring about almost any change to try to appease the marketplace,” he said. “The company, in closing doors, is taking the wrong move — and that’s the negativity the market is taking today.”

Albioni did concede that the new chief would need some time.

“That window is short-lived,” he said. “It’s probably 2½ to 3 months.”

Mike Genovese, an analyst who cover RIM for MKM Partners, called Heins “the wrong guy.”

“It’s basically because he’s just reading from the same script that Mike and Jim have already written for him,” he said. “There’s really no new fresh blood, no new fresh ideas.”

Genovese, who held a “neutral” rating on the stock and a target price of $15 per share, said M&A speculation would be the only thing to move the stock higher — perhaps $25 per share.

Trader Steve Grasso of Stuart Frankel said there was a takeout possibility, which could take the stock to $24 per share, but that was not reason to buy.

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“I wouldn’t buy RIM even with Grasso’s money,” said Brian Kelly of Shelter Harbor Capital. “I wouldn’t short it, either.”

Kelly added that the company held value in its software, handset and user base — even with Apple’s iPhone as a headwind.

“There’s a potential here, he said. “Certainly, this new CEO did not instill any confidence. If you think RIM’s not a turnaround story, come on, it’s crazy.”

Jon Najarian said he had no position

Mike Murphy of Rosecliff Capital also was content to stay away altogether.

“Some value in RIM? No. I’m not a buyer here — whatsoever,” he said.

Related Stories

• Herb Greenberg: RIM CEO Changes Are Irrelevant
• RIM Just Needs to Promote Itself Better: New CEO
• RIM Has a New CEO, But Does It Have a New Game Plan?
• Samsung Says No Interest in Buying Troubled RIM

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Trader disclosure: On Jan. 23, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: P. Najarian is long AAPL; P. Najarian is long BAC calls; P. Najarian is long C; P. Najarian is long JPM calls; P. Najarian is long MSFT; P. Najarian is long INTC; P. Najarian is long JCP; Murphy is long CHK; Murphy is long HAL; Murphy is long CSX; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns WFT; Grasso owns XLU;

For Steve Grasso
Stuart Frankel & Co and it’s partners own CSCO

Stuart Frankel & Co and it’s partners own CUBA

Stuart Frankel & Co and it’s partners own GERN

Stuart Frankel & Co and it’s partners own HPQ

Stuart Frankel & Co and it’s partners own HSPO

Stuart Frankel & Co and it’s partners own MU

Stuart Frankel & Co and it’s partners own NYX

Stuart Frankel & Co and it’s partners own PRST

Stuart Frankel & Co and it’s partners own WFT

Stuart Frankel & Co and it’s partners own XRX

For Brian Kelly
Shelter Harbor Capital is long XLE

Shelter Harbor Capital is long XLF

Shelter Harbor Capital is long KRE

Shelter Harbor Capital is long IWM

Shelter Harbor Capital is long KOL

Shelter Harbor Capital is long IDX

Shelter Harbor Capital is long EWU

Shelter Harbor Capital is long FTSE

Shelter Harbor Capital is long GLD

Shelter Harbor Capital is long SLV

Shelter Harbor Capital is long TLT

Shelter Harbor Capital is long US TREASURIES

Shelter Harbor Capital is long GERMAN BUNDS

Shelter Harbor Capital is long CORN

Shelter Harbor Capital is long WHEAT

Shelter Harbor Capital is long SOYBEANS

Shelter Harbor Capital is long JJG

Shelter Harbor Capital is short British pound

Shelter Harbor Capital is short Yn

For Vic Alboini
Jaguar Financial and supportive shareholders own just under 10% of RIM.

For Michael Harris
Campbell & Co. is short EUR/USD

Campbell & Co. is long AUD/USD

Campbell & Co. is long WTI Crude Oil

For Jeff Kilburg
Kilburg is long 10-year treasuries

Kilburg is long 30-year treasuries

Kilburg is long TLT

For Vernon Essi
(TXN)I, Vernon Essi, Jr., hereby certify that the views expressed in this research report accurately reflect my personal views about the subject company (ies) and its (their) securities. I also certify that I have not been, am not, and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendation(s) in this report.

For Mike Genovese
(RIMM) The Primary Analyst (including his/her household) does not have a financial interest in the securities of the subject company(ies), nor does MKM Partners LLC habitually deal as principal in transactions in the securities referred to herein (or other instruments related thereto), including positions and transactions contrary to any recommendations contained herein held by the research analyst/household. The Firm has not engaged in transactions with issuers identified in the report. MKM Partners LLC does not make a market in the subject company(ies). The subject company(ies) is(are) not currently, nor for the past 12 months was(were), a client(s) of the Firm. The research analyst does not serve as an officer, director or advisory board member of the company(ies) and receives no compensation from it(them).