Posted on June 24, 2011, at 1:23 PM .
Analysts for the most part have been parroting each other lately when it comes to RIM and its share price. At least one group, Macquarie Equities Research, isn’t listening to the hype and is giving RIM an Outperform rating and a US$40 per share price target. Kevin Smithen, senior telecom services analyst with Macquarie, believes that while RIM may be seeing some decline in US markets, it is far better positioned internationally than other brands. According to Smithen, international markets are reluctant to adopt the iPhone or Android devices due to fears of their high-margin text messaging revenue being cannibalized. Lower subsidies for carriers in emerging markets also make for higher margins for RIM on each BlackBerry sold.
RIM is doing very well in international markets with a 50% market share in Indonesia where 5.5 million subscribers have actually generated sales of approximately 10 million units. RIM sales in the Asia-Pacific region have nearly doubled in the last year, growing to 1.61 million units in the first three months of 2011 from 817,000 units during the same period last year.
It’s interesting to note that whenever somebody claims “RIM is dead” they won’t touch on some very basic points such as 1) international growth 2) security and 3) the potential roadmap with QNX. These are major advantages for RIM that doesn’t jive with the lazy, half-assed blogging from C-list individuals.
Posted on June 24, 2011, at 10:47 AM .
There are a lot of websites claiming RIM is dead and the BlackBerry is out. This isn’t the case when you look at the future device and OS roadmap and it’s especially not true when you look at the company’s financials. iStockAnalyst did a good breakdown of some key metrics. Highlights include:
- For companies such as RIMM that maintain significant inventories, inventory to sales ratio is a key performance indicator. Inventory to sales for RIMM was 4.41 percent last year, while for this year it is 3.10 percent. Since inventory to sales has decreased from last year by -1.31 percent, RIMM’s inventory management seems to be good.
- RIMM’s sales of $20.6 billion, based on trailing 12 month sales is higher than the sales for the year ended February 2011, which means demand for the company’s products is increasing (I think this is valid even when we consider price inflation). RIMM’s current ratio of 2.04 indicates that the company is managing its operations conservatively.
- The long-term debt for RIMM is $0.0 million, while the net current assets are $4.1 billion, this indicates that the company’s financial position is very sound.
- Currently, the company’s P/E of 4.11 relative to the growth rate of 51.23 percent, based on the average of the three, four and five year historical EPS growth rates, is very attractive.
Read more at “Should You Invest in Research in Motion” at iStockAnalyst.
Posted on June 17, 2011, at 9:15 AM .
The newswire is abuzz about recent firings or layoffs at RIM and generally giving the tired same response of “another nail in the coffin for RIM.” The truth of the matter is that it’s probably not that people considering the giant size of RIM globally, and in the end it’s for the best. Fresh blood will bring fresh ideas to the company and challenge the status quo. Rather than see this as the demise of the company, it should be seen as a positive move for the company to cycle out some underperforming fodder for some real innovative staff.
Generally, the company has lost its evangelists. Every single news source loves to put a negative spin on the news. For example: RIM is supporting other smartphone platforms on BES. Rather than understand that companies on BES are seeing a smattering of other devices on the network and a few iPhones isn’t a corporate takeover, media likes to say it’s the end of RIM. Hopefully these layoffs are happening in the marketing department because they’re clearly not doing a good job of convincing the tech writers and bloggers of the world.
The media is a real herd mentality these days. Maybe it always was.
UPDATE: Again, the media just keep repeating the same line over and over. When the VP of Digital Marketing, Brian Wallace, announced he was leaving for Samsung, somehow this got translated into bad news for RIM. The real story is that Brian Wallace has been working at RIM for 11 years. Any company that’s going to transform for a fast-paced and changing market should be happy if 11 year old employees are leaving. It will make room for new blood that can invigorate the company.
Posted on April 29, 2011, at 10:11 AM .
RIMM stock took a pretty incredible nose dive yesterday after the quarterly conference call. Investors have been really bearish on the stock for a few reasons including:
1) Initial reviews of the PlayBook
2) Worldwide shipments are slowing
3) Lack of ability to create hyped launches
4) Rumored carrier support withdrawal
Continue reading ‘Now Seems Like a Great Time to Buy RIMM Stock’
Posted on July 22, 2009, at 11:22 AM .
RIM stock fell 1.43% to $81.99, after Nortel rejected their offer for CDMA and LTE technology being auctioned due to Nortel’s failing business.
The auction is part of bankruptcy protection proceedings and Nortel is claiming that RIM had refused to comply with the court approved procedures.
Overall, Canadian stocks are doing well, and the US economy is showing signs of stabilizing. Federal Reserve Chairman Ben S. Bernanke is optimistic, as all three major indexes in the US closed in positive territory.
The S&P 500 was up 3.45 points, or 0.36%, to 954.58 and the NASDAQ composite index closed at 1,916.20, up 6.91 points, or 0.36%.
[Via]
Posted on April 3, 2009, at 8:47 AM .
A lot of the information I am about to post has already been described in previous stock market and share analysis reports. I am reposting this because the numbers are presented in various ways and it’s nice to get a reminder that the economy isn’t in total shambles.
That being said, RIM has sold its 50 millionth BlackBerry! While everyone is talking about these TETs (tough economic times), RIM isn’t blinking and continuing to sell smartphones and saturate the market with hands-down the best device.
RIM reported record high revenue of US$3.46 billion in their most recent quarter, up 84 percent compared to the same time last year, as it shipped 7.8 million devices, also a new high for the company. Net profit for the quarter rose to $518.3 million, up from $412.5 million last year. RIM has also added 3.9 million new BlackBerry subscribers!
Smartphone sales are a sure bet these days. Surveys of family expenditures during the holidays report that half of respondents say they would buy electronic devices before the end of the year. Expect many of these electronic devices to be smartphones.
[Via]
