Research in Motion (TSE:RIM or NASDAQ:RIMM) is a stock that has emerged on my radar screen. The company's flagship product is the Blackberry smartphone. This phone has always been very popular with the business community, and we think the company is likely to have a resurgence, but perhaps under Android or Windows OS, or both. i.e. Letting the customer decide. It was never really software that distinguished it in the market was it? And how could you go wrong by adopting the same software as your competitors with a brand like Blackberry. There are other reasons as well:
1. The market is abuzz with tablets and touch screens. These are marketing gimmicks, and RIM is right to not get bedazzled by them. I can touch type far faster with fingers than I can with a touch screen. Buttons have edges; screens don't. I have never understood the appeal of these tablets either. They are tomorrows dinosaur. Expect netbook, mini-laptops and full-size laptops to dominate. Touchscreen is a fad with limited use.
2. Trading on low multiple: RIM is currently capitalised at $28 billion, it has $2billion in cash, and a PER of just 4.7 according to Google Finance.
3. Upside is huge. The market for Blackberry's are a discerning crowd. I personally prefer the Nokia E5, however people can expect a similar experience from RIM in forthcoming models.
Expect their new releases to grab sales from loyal business customers, i.e. Might it be selling off another 25,000 units to GM? I think so. These customers, unlike the retail customers, are sitting on the side, and not just for RIM's new product, but for new Android applications to justify dumping their old phones.
For this reason, I am expecting some good news from RIM in coming months. But what would I know....I am just a mining analyst who loves my Nokia E5. Want more info on RIM - I am responding to this story and Google Financial data.
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Andrew Sheldon www.sheldonthinks.com
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