X
  • Please log in to access your watch/favorite lists!

Time to buy some RIMM

I was just looking at RIMM again, and i was surprised to learn that comparing Q1 2009 to Q1 2008, they increased revenue from 1882.7 million to 3463.2 million, an 84% increase. Yet with a PE ratio of only 23, they're priced as if their growth stage is near an end. Its seems to me like their situation in terms of profits and revenue are significantly better then before the recession, yet they're trading at half the price.
What do you make of that; Is RIMM severely undervalued, or is there a factor I'm missing here? For a long term buy, what are your thoughts on Research in motion?

Best Answer

alanj answered a question in Financial Analysis.
2082 points

alanj answered 6 months ago …

Technically, the market in general is very close to being overbought. And it has reached a resistance level that it is having a hard time breaking through. I anticipate a trend change soon if it hasn't already started. I'd wait for the bear market to continue down and then when it starts heading back up buy RIMM at that time. You are probably looking at several months from now. Maybe buy in the $40.00 range or less. RIMM does make a popular product. It should be a good long term investment.

Read more from alanj



Answers

EthanR answered a question in Financial Analysis.
4075 points

EthanR answered 6 months ago …

Hey Chaos! I agree with AlanJ. If the Nasdaq drops 10%, RIMM will go down along with it. If you are afraid of missing some kind of big move, then at least dollar cost average a position. Or, go long on RIMM, but get some kind of "insurance", either with Puts or by buying QID.

Read more from EthanR