Tag: motley-fool

Weekly Contest: Why is the market undervaluing RIM?

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(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.)

Research In MotionInteresting 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.

Listen to the Fool.

The Motley Fool calls out Motorola

Comments

Court JesterYou know it’s hard times for a company when someone wearing a three-pronged hat with bells on it calls you out. But considering the bad luck Motorola has been having recently, maybe we shouldn’t be so surprised. Pointing to Moto’s financial downturn in the face of across the board industry success and the iPhone‘s drive to make smartphones cool for everyone, the analysts at the Fool wonder why a company with such a hugely successful product like the RAZR can’t make enough money.

Here’s a potential answer: Motorola’s product line is stagnant. The RAZR’s selling point (which is now 3 years old, mind you) was that it was sleek, exclusive, and cool. When the device went from haute couture to mass market in 2005 and even your grandma was sporting a pink V3, the RAZR lost that cachet with trend setters. Future iterations have failed to hit the magical trifecta of the original, and most seem to be slightly revised models of a device that everyone already owns (which they are). Hey, Motorola: there’s a reason why a $500 device made by a computer company gets dubbed the “Jesus Phone” and receives national news coverage during its release. Hit us with something new already, please. And no, we don’t mean the Q9h.