Profit from the smartphone wars losers

Forbes gives us some useful, if pedestrian, stock options advice:

Smartphone-exposed equities have garnered quite a bit of attention this week, largely thanks to Nokia Corp.’s (NOK) recently slashed sales guidance. The firm attributed much of the warning to the growing success of Google’s (GOOG) Android across the pond, as the operating system ran 34% of smartphones in Western Europe in the first quarter, compared to only 8% a year prior. 

Against this backdrop, let’s take a closer look at three potential contrarian plays: Research In Motion Limited (RIMM – 40.52), Motorola Mobility Holdings Inc. (MMI – 24.28), and Broadcom Corporation (BRCM – 35.03).

Research In Motion Limited (RIMM)

BlackBerry maker RIMM was probably most sympathetic to NOK’s fundamental woes, with the shares retreating to a two-year low on Wednesday. As a result, the stock is down more than 30% in 2011, with the most recent leg of its downtrend highlighted by resistance at its 10-day and 20-day moving averages. Now, the equity is struggling to maintain a foothold atop the round-number $40 region, which has been compromised on a monthly closing basis just once since October 2006.

In light of the security’s struggles both on and off the charts, the bulls among the brokerage bunch are starting to hit the exits. However, there’s still plenty of room on RIMM’s bearish bandwagon, with 16 analysts maintaining “buy” or better ratings, according to Zacks.  To bet on an extended retreat for RIMM, traders may want to consider the stock’s July 50 put.  

Motorola Mobility Holdings (MMI)

Unlike NOK, MMI stands to benefit from Android’s growing presence in Europe, with the company one of many firms to launch new Android-based handsets in the region in recent months. In fact, the company’s CEO recently said the firm will have a strong presence in Europe this year, especially in the fourth quarter. In addition, the executive said MMI is better-positioned than many other Android players, and is even considering acquisitions to generate product differentiation.

Technically speaking, though, MMI hasn’t been much to write home about, with the security shedding about 15% of its value in 2011. More recently, the stock has bounced along between support in the $23.50 region and resistance in the $26.50 area — a trading range that hasn’t been violated on a weekly closing basis since early March.

Nevertheless, the shares of MMI could benefit from an unwinding of pessimism on the Street.