I will incorporate a structure to my blog. I will focus on one stock per week. I will change friday, and end speculation or conviction on wednesday. On thursday, I will reflect on stocks that hit or missed. However, I don't have a good track record for hitting my deadlines on blogging. Today, I will focus on Research in Motion. You know, the company that makes Blackberry handsets. I've seen the Curve, the Tour, and the Pearl in person. Can't say I was impressed. Today, the stock fell 11% and I know many people would think this is a value. However, let's lay it out...
Pro's
- Blackberry server promoting security
- sales increased 36% to $4.1 billion
- 53.3 million smartphones shipped
- RIMM's tablet, the Playbook, is set to release this summer
- Rumors of share buyback
Con's
- Lower future guidance
- Earthquake of Japan will have affect on production
- Lower growth compared to NASDAQ index
- Inferior smartphone line up
- Losing market share of smartphone
- Tablet is inferior to competitor's
- Lack of app developers
I expect the stock to sink further. I'm predicting $49 mid-june, then support after that. Whoever is long and held during the weekend takes a big risk. A lot of disturbance around the world lately. 2 days is a lot, now a days. The bottom line is the growth of RIMM is not enough. Your interest can be spent elsewhere.
Next scheduled post: 3/26/2011 (RE: UIG meeting w/ Jonathan Buckley)
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