What does everyone think of RIMM right now? It's been hit extremely hard and closed at 35.17 today. I think it's a good buy right now trading at 5.55 P/E now into earnings.
I think anyone who shorted this thing the last few months might want to take profits now. Takeover bid, start a dividend, improved outlook, etc etc. Any of these events would be a shock to the bears. On the downside, how much lower could it really go ? Honestly, maybe I'm missing something here, but how many money makers with no debt actually drop to P/Es of 4, 3 or 2. I'd love to hear about them it would lend some perspective.
It can easily go to $20 and below, as it has been there fairly recently. But at this point it starts looking like a buyout candidate for own ofbthe many companies struggling in the handset market.
So you think RIM will join the long line of technology companies with a P/E level of 3. Oh wait, what line ? RIMM hasn't been $20 a share since 2006, 5 years ago. I guarantee you that their earnings in 2006 were nowhere near today's levels. So if someone has those figures, you are basically saying the earnings will go below the 2006 numbers ( because we still have money pouring into RIM early this year ). Is this at all realistic ? Let's see the numbers behind your forecast. ps Looked it up, RIMM made around $2.05 eps in 2006 and half that in 2007. The forecast on 2011 is $6.65, so you are basically expecting a drop of $4.60 a share in earnings very soon. Sure, anything's possible, but it seems highly unlikely to me, even the reduced consensus is $1.30 per quarter low end, which means they only need two quarters to blow away what they used to make in 2006 in the whole year, and EVERY quarter is beating their 2007 annual number.
don't they make gadgets like that? how are they supposed to make $$? is this last century technology?