RIM
- Thread starter lawmaker1
- Start date
Rim 225.62 cdn. low 70.51 cdn. high 230.10
Rim sells more than 70% to people who use it for business. the apple number is closer to 30%.
so their products appeal to different segment. Rim has a keyboard that is perferred by most users over the apple i phone.
the management has done a good job. during the tech boom they issued stock near its high (at the time) to make sure they had plenty of cash when needed.
the only mistep they took when patent trolls, took them to Court in the US and they settled. they should have settled much earlier, of coarse US patent law should be changed to discourage these threats of lawsuits...another topic.
the reason the stock did so well this year, is that the pearl was a huge hit. this helped to ensure strong growth...
ie... over 30% in 2008, in their latest earnings they blew past esitimates, which the market rewarded.
also they are now going into china. so the market pushed it up again. there will be plenty of competition and knockoffs, however many analyts believe the rim products will be a status symbol....to a point in china.
also the iphone is only carried by one network in the US att.
do not own the stock have written some puts on the stock in the past and collected a good premium. however have ussually passed on owning the stock scared of the high valuation.
if a company like this misses the stock can come crashing down, so will pass. was asked years ago about rim, and said did not own it, (same reasons above) however stated if was to own one in the field probably would be rim. (also liked Nokia)
2008 looking at a growth rate 34-39%, if they can pull that off then Rim shareholders do not have to worry.
thanks
selkirk
Rim sells more than 70% to people who use it for business. the apple number is closer to 30%.
so their products appeal to different segment. Rim has a keyboard that is perferred by most users over the apple i phone.
the management has done a good job. during the tech boom they issued stock near its high (at the time) to make sure they had plenty of cash when needed.
the only mistep they took when patent trolls, took them to Court in the US and they settled. they should have settled much earlier, of coarse US patent law should be changed to discourage these threats of lawsuits...another topic.
the reason the stock did so well this year, is that the pearl was a huge hit. this helped to ensure strong growth...
ie... over 30% in 2008, in their latest earnings they blew past esitimates, which the market rewarded.
also they are now going into china. so the market pushed it up again. there will be plenty of competition and knockoffs, however many analyts believe the rim products will be a status symbol....to a point in china.
also the iphone is only carried by one network in the US att.
do not own the stock have written some puts on the stock in the past and collected a good premium. however have ussually passed on owning the stock scared of the high valuation.
if a company like this misses the stock can come crashing down, so will pass. was asked years ago about rim, and said did not own it, (same reasons above) however stated if was to own one in the field probably would be rim. (also liked Nokia)
2008 looking at a growth rate 34-39%, if they can pull that off then Rim shareholders do not have to worry.
thanks
selkirk
do not follow it to closely. know people who people who have them and love it, was planning on getting one but have put it off.
as for the stock, if they merge with XM, then it is probably a buy if not then a sell.
satelite radio faces many challenges and only see it working if they merge.
note: in the future they will have to pay much less for the content than in the past.
since both companies are ramping up cash flow numbers and earnings are worse (each year) over a three year period.
this is a high risk/reward stock.
thanks
selkirk
as for the stock, if they merge with XM, then it is probably a buy if not then a sell.
satelite radio faces many challenges and only see it working if they merge.
note: in the future they will have to pay much less for the content than in the past.
since both companies are ramping up cash flow numbers and earnings are worse (each year) over a three year period.
this is a high risk/reward stock.
thanks
selkirk
