8 RIMM (Research in Motion Ltd.) reported it’s earning last week on Thursday December 15, 2011 and as I mentioned in one of my previous posts cheap can become cheaper. I am sure with most of my viewers who saw the TITLE ‘BUY:RIMM’ they would be licking their lips and waiting for the markets to open on Monday and buy a lot more of RIMM shares cause it’s trading at stupid cheap valuations or if they already hold it , they would want to buy more and average down.
I am sorry to disappoint you guys, in my opinion, RIMM at these prices is in my
‘GARBAGE’ stocks list or should i say ‘ DO NOT TOUCH’ list. Let me break it down for you.
Fundamentals:
1. Product Delays: RIMM over the past few years has suffered most in terms of product delays than any other tech name out there, and surprise surprise, they have announced that their new set of blackberry phones will not hit the market until late 2012 as compared to early 2012 as per their previous announcements.
2. Market Share: In US , RIMM in the smartphone business had a market share of 9% in third quarter of 2011 , down from 24% in 2010.
3. Net Income: $265 million in in Q3 2011 as compared to $911 in Q3 2010.
4. Tehnical Issues: RIMM which is proud of its BBM service, had an outage for almost 2 days. A lot of users who were debating about whether to switch to Android or iphones couldn’t have found a better reason to switch.
Techinals:
I have attached a daily and a weekly chart, show it to any 2 year old and ask them what do you see in these two charts, a simple answer would be ‘it’s going down’. 52 week low every week tells me something that nobody wants to buy it and sellers are looking at every opportunity they can find to sell it at every up move they see in RIMM.
CONCLUSION:
I am not recommending to short RIMM or buy RIMM. As an investor, I would recommend that there are a lot of other good names out there with good growth stories and future growth outlook that you can be in, rather than buying a stock which you might be stuck in. Hence, it’s in my ‘GARBAGE’ list stocks for now, cause I don’t see a good risk-reward ratio.
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dchsn6
Disclaimer: I have no affiliation to RIMM (Research in Motion Ltd.) and I do not recommend it as a buy, hold or sell. I would recommend the viewers to please contact your Financial or Investment Advisor before making any trading decisions. This post is only for my own personal use and stocks analysis.
8 Responses to “BUY:RIMM???”
10banger
RIMM’s story is pretty simple. Since the Storm 1, they have had some absolute shit products. I believe they have some good products coming down the line and I’m tempted to buy at this point, but not yet.
dchsn6
coudn’t hve agreed more…imo…if there r any good products coming out..then technically..we shud see some kind of bottoming formation to show the big institutions r anticipating something…until that happens..stay out ..
Nick
If long stock holders sell at every opportunity they can, and no one is buying, their next products are coming out in the end of 2012, so the stock prices are continuously dropping, bottoming out at 8 or 10, (my guess) would it not make sense to short it, until at least June,
dchsn6
shorting RIMM at these prices are dangerous due to two reasons 1. u can see a downside of $13 i.e only if it goes to zero which is highly unlikely since even without any new products, they still hve BBM and security emails which have value to it and ur risking unlimited upside 2. The longer it keeps dropping the higher and higher the chances of being taken out by one of the big boys Google or Microsoft, it would be just a matter of when and how much. Hence at these prices RIMM is in my ‘DO NOT TOUCH’ stock list atleast for now.
Sargent Schultz aka waterlogz
There are better stocks out there to short or go long.. This one has to much baggage..
dchsn6
true that
huh?
all you guys being so negative makes me want to buy a shitload of rimm.
dchsn6
I am not bullish nor bearish, it just doesn’t give me a good risk-reward opportunity.