Research In Motion Shares Squeeze Higher as Traders Desperate for Liquid Plays

By Roger Baettig | November 23 2012 10:00 AM

Research In Motion (NASDAQ: RIMM [FREE Stock Trend Analysis]) shares are up more than 10 percent on very heavy volume (more than 2.8 million shares have already traded) in pre-market action Friday. The upside follows a 17 percent move higher on the Toronto Stock Exchange Thursday. While a number of sources are attributing the strength to a bullish research note from National Bank's Kris Thompson on Thursday, this is certainly not the full story. Thomspon boosted his price target on RIM shares from $12 to $15 amid increased carrier optimism related to BlackBerry 10 -- a factor also cited by Jefferies' Peter Misek Tuesday morning when he upgraded the stock to Hold. RIM shares were up nearly six percent on Wednesday.

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Increasing sentiment in what may turn out to be RIM's Alamo is definitely notable; however, a $600 million swing in market cap...? That seems to be pushing it.

A more likely explanation for the sharp move higher: a short percentage which has been near 20% and bored traders looking for a liquid stock on Thursday while the U.S. stock market was closed. Also consider that RIM shares have nearly doubled since marking a 52-week low at $6.22 in September.

As is wise advice for any bargain shopper on Black Friday: buyer beware.