RIM likely to find support

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

Xero - accounting services (NZX:XRO)

I have not been watching blue chip stocks lately, though my suggested KDDI in Japan is doing well. I have come across a NZ stock which I think requires some attention. The NZSX is a relatively small exchange so good stories tend to slip past people. The stock is by no means a blue chip, but it could be. I note that the founders of MYOB haved taken a significant stake in the business. It is only capitalised at $123mil, but its quickly expanding globally, and it seems to be on top of its costs now, with still $23 million in cash.
The company has developed an online accounting solution for small-medium sized businesses (SMEs). I think its a great solution given the ease of taking your accounts on the road with you, the opportunity and desire to see your latest results on the go, and the ability to show people your latest financials. I also believe we will see in future corporate accounting become 'continuous' in the sense that you will have period reporting only for the purpose of comparison. We will not wait for quarterly results, we will want dynamic data for sales, etc. Maybe these will be processed straight away too, i.e. Straight thru processing. This is the future, but these guys seem to be well along this path. This is a big market, and I think this group will seize a part of it.
See their review and latest 6 monthly interim result.
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Andrew Sheldon www.sheldonthinks.com