Is It Time for an Apple Inc. (AAPL) and Research In Motion Ltd (BBRY) Pairs Trade Switch?

Narayan believes BlackBerry’s recent rally is “more or less over,” and if the Z10’s actual results are below investor expectations, shares could promptly return from whence they came and “test” all-time lows again.

Research In Motion Ltd (NASDAQ:BBRY) has been coy about early launch figures, providing vaguely impressive comparisons to previous launches. On the other hand, the company did take the opportunity to boast an order for 1 million BlackBerry 10 devices last week, the largest single purchase order in BlackBerry’s history. Those smartphones are going to an unnamed “established partner.”

The devil is in the details though, and the identity of this mystery partner remains to be seen. If BlackBerry is referring to a large carrier partner or other distributor, then the order isn’t as impressive as if the company was selling those devices to a large enterprise or government buyer. Selling into the channel and selling to end users have very different implications. Low sell-through simply leads to inventory writedowns, after all.

Much like how negativity around Research In Motion Ltd (NASDAQ:BBRY) peaked six months ago, the same appears to be happening with Apple (NASDAQ:AAPL) right now. The current dirt-cheap valuation simply makes no sense, and the pullback may be close to its end. Narayan believes that since Apple has come back to where it was before its meteoric rise, shares can resume a steadier climb. The mean reversion has ended, according to the analyst, and both Apple and BlackBerry are about to resume their previous trends.

Over the next six months, will a long Apple (NASDAQ:AAPL) and short Research In Motion Ltd (NASDAQ:BBRY) pairs trade prove as profitable as the opposite position was over the last six months?

The article Is It Time for an Apple and BlackBerry Pairs Trade Switch? originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

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