Cramer Says Research In Motion Q1 Guidance Will Be 'Huge' (RIMM)

On this afternoon's segment of Stop Trading!, Jim Cramer told CNBC viewers about a possible trade in one of his favorite tech stocks, Research In Motion (Nasdaq: RIMM).

Cramer made Research In Motion a member of his popular "Four Horseman of Tech" back in June, along with Google (Nasdaq: GOOG), Apple (Nasdaq: AAPL) and Amazon.com (Nasdaq: AMZN), when concerns of an economic downturn were only whispers on Wall Street. Now that the Horseman have been beaten down amid a broader tech sector sell-off since the beginning of this year, Research In Motion appears to be the stock that has outperformed: shares of RIMM are only down 2% year-to-date, compared to a 12% decline in the Nasdaq index and 30% declines in both Google and Apple's stock prices.

With Research In Motion expected to report earnings next week (April 2), Cramer told investors to get in ahead of the results. The Street will be looking for Research In Motion to report Q4 EPS of about $0.70, as on February 21, the company reaffirmed its previously issued guidance of $0.66-$0.70.

Jim believes RIMM's guidance for Q1 will be "huge", implying this is the main reason to buy the stock before the earnings report. Furthermore, Cramer said a strong outlook will put "shorts on the run", referring to short sellers who will need to buy the stock in order to cover their bets should the stock price start to jump. Notably, at the beginning of March, Research In Motion had about 4.5% of its float shorted.

Research In Motion Limited engages in the design, manufacture, and marketing of wireless solutions for the mobile communications market worldwide. [BCS]

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