Research in Motion Below $50: Time to Buy? (RIMM)

Research in Motion RIMM stock slid below $50 a share early this afternoon, as the company continues to battle countries over BlackBerry security. Research in Motion is actively working to solve issues raised by the United Arab Emirates and India. Both the UAE and India have requested the ability to actively monitor BlackBerry communications. National security concerns have been raised by both countries. Tata Teleservices, an Indian telecommunications company, said Tuesday that Indian officials had requested monitoring capability for BlackBerry services by August 31. "We have received a letter ... asking us to ensure that legal intervention capability is put in place for BlackBerry services by 31 August 2010," a Tata Teleservices statement said. Research in Motion faces an August 31 deadline to give Indian government authorities the ability to read email and instant messages sent over the BlackBerry. The news comes after UAE officials said progress is being made in ongoing discussions with Canada-based Research in Motion. "Talks are progressing well and hopefully we will be able to reach a conclusion in the near future," Yousef Al Otaiba, the Gulf state's ambassador to the United States, told reporters after a meeting of UAE ambassadors gathered in Abu Dhabi. Research in Motion's stock has been pummeled by the recent developments. Since mid-July, shares have fluctuated around the $55 mark, but have since declined to $50. Is the slide a good opportunity to buy based on a valuation basis? Bulls will point toward BlackBerry's tremendously strong global market presence, and a highly visible effort to compete with Apple's AAPL iPhone in its newly released Torch touchscreen. Bears, however, will point toward potential lost business. BlackBerry customers pay a premium for the privilege of encrypted security, and some may be turned off by a company that succumbs to foreign interests. Still, some investors will have a hard time not buying at $50, when the 52-week high is over $85. Whether that translates into a stock rebound remains to be seen.