Shares of Research in Motion closed higher on Tuesday after the BlackBerry maker inked a big deal in an attempt to win more subscribers. Should you get in now?
Under the agreement, Digital China, a Hong Kong-listed IT company, will distribute Blackberry handsets, accelerating RIM's effort to expand into mainland China.
The agreement will "help RIM further expand its business in China" by giving it access to Digital China's national distribution network, the two companies said on Monday.
Blackberry has struggled to establish a strong foothold in China, despite being available for several years for subscribers of China Mobile and China Telecom.
What’s the trade?
Although China is the world’s biggest cell phone market by subscriber, Citi analyst Jim Suva says don’t buy RIMM on this deal.
“They will still have a difficult 2010,” he says. “(They're facing) increased competition, promotion commotion and at some point Verizon may get the iPhone. It all spells trouble for them.” Suva has a ‘sell’ rating on the stock.
I like RIM, counters Pete Najarian. I can see more upside.
If you want to play China's smartphone potential, do it with China Mobile, counsels Tim Seymour.
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Trader disclosure: On December 7th, 2009, 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 (AGU), (C), (GS), (INTC), (MSFT), (BTU), (NUE); Seymour Owns (CHL), (AAPL), (BAC), (GE), (MSFT); Najarian Owns (AAPL) Calls; Najarian Owns (BAC) Calls; Najarian Owns (DD), Owns (DD) Calls Spread; Najarian Owns (GE) Calls; Najarian Owns (INTC), Is Short (INTC) Calls; Najarian Owns (TXN), Is Short (TXN) Calls
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