Welsh billionaire Terry Matthews hints at partnership prospects for RIMM

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Overnight press reports of comments from Terry Matthews, the Welsh originate and tech billionaire that RIMM would be more likely to recover if it finds a strategic partner to help defray expenses caught my eye today, particularly given the timescale that has now passed since RIMM CEO Thorsten Heins embarked upon his “corporate review” in which “all options were on the table”.

Partnering is so important because it’s not on your income statement,” Matthews, the founder of Newbridge Networks Corp., said in an interview at the Toronto Board of Trade. An alliance with another company could help RIM with research spending and generating revenue, he said. “Partnering is an incredibly important part of the DNA of a company.”

Matthews declined to name any potential partners for RIM. Microsoftm which like RIM counts companies as some of its biggest customers as opposed to end market individuals, is often cited as the most logical partner even though it has a current strategic partnership with Nokia.

RIM Chief Executive Officer Thorsten Heins said last week that he’s met with CEOs at various organizations over the past several months to discuss software licensing and partnerships

RIM climbed 4.8 percent yesterday to $7.86 at the close. The stock has now gained for 5 straight days, being bouyed by the suprisingly robust results last Thursday.

Microsoft is another issue,” Matthews said when asked about the potential for a tie-up between RIM and the Redmond- Washington-based software maker. The most important thing is a good fit, he said. “They have to have a good partner program and mutual respect,” he said. “It could make a massive difference.”

Canadian technology companies struggle to get respect among U.S. investors, who tend to think of their North American neighbor in terms of commodity investing, Matthews said.

“People don’t actually value high-tech companies in Canada but they do in the U.S.,” he said. “Iron ore is better, iron ore, tin, zinc, lead, they love lead.”

A look at the chart below shows that the stock is now above the 19 & 37 day ema and they are both about to cross and point upwards – a situation that has not happened for over 15 months and that should not be ignored. A decisive break of $8 will open up initially the gap at $9 and suggest a move over $10. Throw into the mix the 18% the companies stock being sold short and we have a classic bull recipe.

Our monies on a $10+ price by Xmas.


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