Blackberry Software, Reviews, and News!

Is RIM worth buying?

Market analysis website Seeking Alpha has an interesting article up on RIM’s stock price and whether it’s a reflection of their actual value. Because of RIM’s recent stock drop, it would seem to make sense that now would be a good time to buy in. However, Seeking Alpha contests that RIM’s share price might still be overvalued.

Projecting a best-case-scenario cash flow growth rate for RIM (20% in the next four years, 15% by year ten), Seeking Alpha states that this generates a share valuation of $66.22, which is close to where RIM’s share sits right now.

In other words, RIM’s stock is almost priced for best-case scenario growth. For those who believe that RIM can grow its free cash flows at 20% per year for the next five years and at double digits for five more years after that, there might be tad more value left in the shares. I have my doubts.

Promote this story through: RIM worth buying? digg:Is RIM worth buying? newsvine:Is RIM worth buying? blinklist:Is RIM worth buying? reddit:Is RIM worth buying? fark:Is RIM worth buying? blogmarks:Is RIM worth buying? Y!:Is RIM worth buying?

Leave a Reply


Specials - more!
The Pearl Hardware review
The BlackBerry Pearl
FFA Express
FFA Express
TWiST's TaskManager
LexSpell for BlackBerry
Simprit's MiniRingtone
Mobylo's MultiAlarm
Blackberry News
RIM News
Wireless Industry News
  • BBSocial
    Boy Genius Report
    International BlackBerry User Group
    Mobile Burn
    Phone Arena
    Palm 247
    Mark Evans
    BlackBerry (Official)

    Entries RSS 2.0
    Comments RSS 2.0 Add to My Yahoo!
    Subscribe in NewsGator Online

    eXTReMe Tracker