(With Thought asking the best question of the week already in his editorial, it seemed best to make this the Weekly Contest. Whomever posts the best comment will receive 3 free games (!) from Bplay. LAST WEEK’S WINNER was JEF, who thinks Wi-Fi could be a win-win for everybody. ed.)
Interesting report coming from financial analysts the Motley Fool today. It seems that the Fool’s investor community has given a 1-star CAP rating to the boys and girls at RIM. This is despite the fact that RIMM is currently being traded at 222 USD, well above their 3-month high, and recently posted a ‘knock one out of the park’ quarter.
Most of the Fool’s concern seems to be based around the iPhone and other devices encroaching upon BlackBerry market share. I think these are completely valid concerns. However, for a company that has continuously met or beaten expectations, aren’t we shortchanging RIM a bit here? It’s possible that RIM’s stock is overvalued, and it’s true that no company can be bullish forever, but have we seen any indication at all that RIM’s slipping? I don’t think so. Maybe this is what Jim Cramer meant when he talked about pushing down RIM’s reputation in order to make mad money.
Check out Fool analyst Matt Koppenheffer’s analysis after the jump, and post a comment to let us know if you think analysts are giving RIM a raw deal.
Many players on CAPS have noted this and think that competing phones — particularly Apple’s new, shiny iPhone — could put a dent in RIM’s business. One such investor is Jburger2007, who says that RIM will “get hit with iPhone effect. [The stock will stay] at present level until replacement applications become available for the iPhone. At which time a huge migration should occur.”
Dethroning an incumbent with penetration such as the BlackBerry, though, is easier said than done. For Apple in particular, the flashy, music-playing iPhone may be a tough pitch as a replacement for the utilitarian, secure, and dependable BlackBerry. Furthermore, for all the effort that competing companies are putting toward beating out RIM, you can be sure RIM is expending a similar amount of effort trying to increase its lead.
So what do you think?