It’s not uncommon to find two opposing financial analysts on RIM’s stock in even the best of times, so it should come as no surprise that during the current global economic crisis we can’t get two analysts to agree on anything.
First we have Apple shareholder Howard Lindzon of Knight’s Bridge Capital, who is not so much down on RIM as he is long on Apple. However, he does state that RIM is “chasing Apple”, and should not cannibalize their sales with the BlackBerry Bold and Storm, but rather focus on improving the BlackBerry Curve. Hmmm. (via Yahoo!)
In contrast, we have Ben McClure from McClure & Co, with a much more focused look at RIM’s stock. Ben’s essential premise is that the recent pummeling RIM’s stock has taken (currently trading around $45/share) has made it a perfect buy stock. Here’s a little snippet of the article, which centers around RIM’s solid fundamentals:
To drop any further, the Research in Motion’s business would have to really fall apart. That’s not impossible, but it seems unlikely. The company still has only a tiny share of the overall global market for smart phones, leaving it heaps of room to grow. Wireless data global adoption is still early and at a tipping point. Research in Motion’s global carrier and distribution channels are just beginning to ramp up.
What’s more, Research in Motion is rapidly launching new phones, like the Bold, Storm, Thunder and Kickstart to enter consumer markets and address different needs and price points. These should boost Wall Street confidence in estimates for the third quarter ending in November and the fourth quarter ending in February.
The question that must be asked is fairly simple: is RIM a fundamentally sound stock that has been recently undervalued due to the global economy and increasing competition, or are they simply running around chasing Apple?