Rimm's edge was their blackberry back when noone else had smartphones. Now they have no competitive edge but relying on the corporate clients from the past, soon enough those clients will switch to android or iphone or even phone7, then rimm is done for. Rimm is nokia 5 years ago right now. Their blackberry has no eco system, no apps, no developer support.
RIMM is in big trouble fundamentally, their phones which are based on their own operating system has now fallen behind Iphone's and phones using Android. As the iphone and phones using android continue to dominate market share, this will put RIMM in very difficult position of whether to continue using their present platform which has been steadily losing popularity with the public, or will they suddenly start adopting android OS with some of their phones to regain lost market share. Until they prove the latter, RIMM is in a definite bear situation.
Zero, you should ask Jim Balsillie which hockey team he is secretly planning to buy, what a idiot. I hope rim go belly up.
Funny thing is you could get AAPL for under $9 a share in 1999. I would imagine the same kind of silliness was being posted about how AAPL had lost market share and was going under. Fact is, RIMM is in a growth industry with huge earnings streams. Obviously they did something right in the past, and the possibility exists they can again innovate and succeed in the future. I wonder what AAPL looked like in 1999 to investors. Of course, you could always gamble on debt laden firms like Citigroup instead. Much, much better chance they go bankrupt then RIMM ever will. In fact, if RIMM gets much cheaper, they'll be a prime takeover target. How cheap can they get though with $8 a share in CASH on their books and probably at least another $5 a share coming the next 12 months ?
not too mention this is as fundamentally cheap as RIMM has ever traded.Enterprise value is 10% below market cap,no debt,current assets>total liabilities and they generate plenty of free cash flow.. The market has already discounted the doomsday scenario..
Saturated industry Well gee, maybe they should share the wealth and give dividends? Until they do, RIMM is a gambling stock. The buyer is betting some other sucker will pay a higher price for the stock. People invest for the future, not the past. They seriously fumbled with the Playbook, and they stated they will concentrate on lower priced models. AAPL turned things around & focused their future on things people want (except me): iPod, iTunes, iPhone, & iPad. Like the despicable salesman that you are, you give silly comparisons.
Why do you think it's silly? You are so clueless, were you still in kindergarten back then? Apple was in fact a pure gamble stock, and they could very well went under. It wasnt until the first ipod came out on the new digital music frontier that started the turn around (and steve jobs of course). Where is the ipod for rimm? and the existing smartphone market is so saturated right now. Even if rimm decide overnight to start using android, they will just become another hardware vendor that has to compete against a very competitive list of other companies with much better hardware to begin with. The only thing rimm has going for is their corporate clients, simply because companies adapt new technology much slowly so most of them are still locked in with blackberry, and the fact android/apple has not made a serious attempt to go after the business segment. But that will all change unless rimm comes out with something revolutionary to keep its corp users. All this are fundamentals, technical who knows what rimm will do short term given the gap down this month.
While it obvious that Rimm has fumbled the ball to a certain degree,there is no question that the only fact as of today is that the fact is fundamentally cheap.Without predicting the future,it would be pretty hard to debate that. Is it possible it trades to the bottom of the channel(apx 33) starting in 9/2009? Sure,but it will most likely be a slow grind as the stock is trading cheap on every multiple,with solid earnings and generating free cash in excess of earnings. The one thing I dont see is the 8 dollars in cash per share.Its 4 dollars.Rimm is generating 8 dollars in OCF,but thats different than 8 dollars per share. I like the technical argument at 70,but at 40% off the recent high I would be looking for a technical reason to buy
Growth industry? Rimm has seen there days of huge growth, everyone who had blackberries are now using android and iphones. I had a friend who just started a position in IT, they gave him a brand new iphone 4! rimm of course tried to play catch up in the tablet industry, looks like another failure to me. This stock is headed down, growth is done with for this company, there is just too much competition out of too many companies today, they had the lead and are now losing it. Keep in mind that in late 2010 they came out and said guess what were not going to release subscriber growth stats anymore after the December 2010 earnings release. They are losing more customers now than any other time in the companies history! Unless they can come out and completely change the industry they are going to continue and lose customers! SELL RIMM, price target below $40.
no doubt the huge growth days are over.. but they are still doing 35 % yoy.The stock is priced at 1% growth off of discounted cash flows.. skype was taken out at 9x sales with no earnings...