$58.98
0.56 (+0.95%)
Research In Motion Limited (USA) (RIMM)
CAPS Rating:
The Company is a designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market.
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Compare market caps of this stock and Nokia, then compare penetration. Nokia has 10x the penetration but RIMM is within 10% of NOK's market cap.
Yeah, pull the other one guys. P/E of 63 says it all into a tape that is weak and likely to get a LOT weaker through the end of the year and into 2009.
What's worse, with their tiny penetration into the handset market any significant inroads by competitors (cough-apple-cough) could really hurt these guys.
Earnings coming up and this may be a short-term loser on their earnings release, but I'll still stick this one out there (and stick my neck out in the process); note my TIME FRAME for underperformance. No, I wouldn't short 'em here into earnings (I did, however, make bank on JUNE $150 PUTs that I bought at the close Thursday and sold off Friday) but I will be looking to go after them hard on the short side should earnings disappoint.
Two things to look for in the earnings release - gross margins and any hint of softness in forward demand. Hear any hint of either going south and these guys are a MONSTER short.
I don't know about all that, but I do know you got this position in at a great price!Bravo.
Finally the market has realized what you said. It is quite obvious when you look at the nokia comparison you made. The only thing that kept this thing so high is everyone on wall st has one and then they get the effect that they cannot see outside the box they are in. I would say @$40 a share or so it is fairly valued now.