Purchase will enhance RIM’s cloud services

Article Excerpt

RESEARCH IN MOTION INC. $24 (Toronto symbol RIM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.1 million; Market cap: $12.6 billion; Price-to-sales ratio: 0.6; No dividends paid; TSINetwork Rating: Above Average; www.rim.com) is paying an undisclosed sum for Dublin, Ireland-based NewBay. This privately held firm makes software that helps wireless network carriers deliver messages, video and appointment reminders to smartphones, tablet computers and other mobile devices. NewBay’s clients include AT&T, Verizon, T-Mobile and Deutsche Telekom. NewBay’s expertise should help RIM develop more Internet-based (or cloud) services, which let users store and access music, photos and other content a centralized server. For example, RIM recently launched BBM Music, a new cloud-based music-streaming service for the company’s BlackBerry smartphones. RIM is a buy. buy…