Remember Nortel...?

As someone who is now on his 6th or 7th Blackberry, and is very fond of the technology, I was very interested in the recent run on the company's stock after the most recent quarter's announcements and release of the new Pearl device.

I am, however, worried that the recent 50% jump in the stock price may be what Alan Greenspan used to call "irrational exuberance". This company is a true Canadian success story which I would hate to see it mired in the same type of financial shenanigans that hit Nortel when its stock price hit similar lofty levels six or seven years ago.

Canadian Press reports today that Research In Motion has found more accounting errors and will miss its Oct. 17 deadline.

Research In Motion Ltd said Friday that its voluntary review of the company's historical accounting of its stock option practices has uncovered additional "technical" errors beyond the ones outlined two weeks ago.

The Waterloo, Ont.-based company, maker of the BlackBerry, said on Sept. 28 and again on Friday that it does not anticipate a significant adjustment to the preliminary second-quarter results that were announced two weeks ago or to historical results.

However, RIM said it will miss the Oct. 17 deadline for filing its second-quarter results with regulatory authorities.

As a result, it will request that Canadian securities regulators issue an order prohibiting RIM's executives and other insiders from trading in the company's stock until the filings are current.

Chairman and co-CEO Jim Balsillie - who recently confirmed he's buying the Pittsburgh Penguins hockey team - and president and co-CEO Mike Lazaridis would be among those covered by the management and insider cease-trade order.

The latest accounting glitch, announced Friday, arises from a difference in the way U.S. and Canadian accounting rules deal with a "net settlement" feature that existed in RIM's stock option plan prior to February 2002.

Balsillie told analysts on Sept. 28 that the original restatement would have a relatively minor effect - reducing previously reported net earnings by US$25 million to $45 million since 1997 - not enough to cause a "material adjustment."

I just hope that the company is being straightforward, because it would be a shame to see a Canadian success story and world technology leader go into the shitter over an accounting scandal.