Research in Motion - not a bargain stock but still worth it

Research in Motion Ltd. (NASDAQ:RIMM) was upgraded twice this week. On Monday, RBC upgraded RIMM to Outperform from Sector Perform with a $180 target. Following Tuesday's selloff, ThinkEquity upgraded RIMM yesterday to Buy from Accumulate with a $165 target, believing the selloff created a buying opportunity.

RIM said on Tuesday that it expects to report the results of its internal stock-option review Monday next week. It's going to miss the Friday deadline, but at least the end is in sight and investors can sigh in relief. RIM said in the past it would likely need to restate some financials following the review, but these are generally believed to be insignificant in the magnitude of no more than $45 million.

Meanwhile, the BlackBerry Pearl continues to have strong sales and the new 8800 is also promising. The downside, of course, is the upcoming Apple Inc. (NASDAQ:AAPL) iPhone, which is expected to be a main competitor.

RIMM shares continue to show resilience and are up 10% year-to-date despite the significant drop after the iPhone was announced. I, for one, would like to wait and see who buys the iPhone before I'd doom RIM. It's quite possible the iPhone will be more popular with the younger crowd, while RIM will continue to be the business crowd favorite.

I don't know if I would call RIMM a bargain stock with its P/E of 57 and its forward P/E of 30, but I'd still consider it now. RIMM is up 50c today or 0.36% to $141.11, still off its 52-week high of $147.05, but definitely not bad on a general down day.