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Greenlight Made Right Move Buying RIM: Analyst

Momentum from last night’s purchase of Research in Motion stockby Greenlight Capital may or may not last — but it should, according to Tavis McCourt, tech analyst at Morgan Keegan.

“It’s a worthwhile bet. The chances for success in the U.S. are relatively low, but the future profitability of RIM is likely to come internationally, where there is still a wide open race for market share,” said McCourt.

The current dominance of competitors such as Samsung and Apple— whose shares topped another record Wednesday — is not necessarily at the expense of RIM, he adds.

Apple and Samsung price points don’t compete well in emerging markets, he argues, because they’re too expensive, which leaves plenty of playing room for RIM.

So, despite months of getting hammered in the market, McCourt is confident that RIM can still be a “good niche provider of smartphones over the long term.”

For the value investor, there may be no reason to wait.

RIM’s stock moved higher on the news of Greenlight’s purchase in after-hours trading Tuesday, and is up again on Wednesday.

“RIM is trading very close to liquidation levels, if not below it. Their patent value is at least a few dollars a share, and they will make money for at least the next four to six quarters,” said McCourt.

Additional News: David Einhorn’s Greenlight Capital Buys Into RIM

Additional Views: Does RIM Have a New Game Plan?
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Disclosures:

Tavis McCourt, does not personally own shares in RIM. His firm, Morgan Keegan does “make a market” — matches buyers and sellers — of RIM stock.

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