$58.42
-1.39 (-2.32%)
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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Everyone knows that the Blackberry Storm was a HUGE disappointment to general consumers, let alone regular Blackberry users. The Storm was rushed to market despite glitches that ranged from sluggish performance to a poor typing interface. However, there is hope. Research in Motion co-CEO, Jim Balsillie, has confirmed that RIMM is "working on next-generation devices in the hopes of continuing to tap into the consumer market."
The plan, according to an undisclosed source, is to release the Storm 2 (not the official name) in September. The 2nd generation touch screen is said to have a more accurate touch screen and a much desired Wi-Fi feature to improve browsing in hot spots. It was suggested that Wi-Fi is not the only major improvement to the phone.
Anticipate more leaks and updates that will drive RIMM shares up and hopefully (for RIMM shareholders and Blackberry loyalists) chip away at the iPhone market share.
RIMM is trading smack in the middle of its 52-week range and flirting with breaking through its current price ceiling. RIMM is a great long term buy on any day. If you want to take advantage of the upcoming pop, start getting in now. If it goes up, great. If it goes down, buy more.
If you invest on what they promise to do, you're taking a huge risk. Especially when the product they just released was supposed to do exactly what they're promising for the next version. It's Microsoft-style vaporware - only Microsoft is big enough to get away with that kind of crap for very long, and even Mr. Softy has recently had a hard time getting people to believe its big empty promises. Hey RIM: stop talking about what you're going to do and do it already.
I agree, the time to buy buy buy was late dec, when the good company was at an attractive price of $39....6 months later we are looking good at $83. That good company no longer is at an attractive price, and the upside is debateable...
GKuhfeldt:
RIMM is in my portfolio long because I believe in Tech, and specifically mobile smart phones. AAPL with its 3GS iPhone and RIMM, as well as QCOM, stand at the top of the heap. Also, I don't believe it's a zero sum game between Blackberrys and iPhones; the pie promises to get bigger for everyone. Futhermore, the iPhone still has security issues that IT managers cite to when greatly favoring RIMM devises, plus you just can't type on an iPhone like a Blackberry. I predict they will both continue higher by carving out their own niches to this growing segment of the market. As for market share, you probably heard that iPhone just inked a deal with one of China's largest cell phone providers granting it exclusive rights to the iPhone for 3 years. On paper AAPL and RIMM look expensive, with high multiples, but the room for growth when consumer confidence rebounds is huge.