Investing in BlackBerry Stock
- You could tell them to do what I did, which was to buy call options. Basically you pay a premium to have the right (not obligated) to purchase a stock at a set price. What I did was I bought 6 Jan 2014 $10 calls. So basically I paid $1.46 premium for each share so I can buy rimm at $10 or sell the options anytime from now until Jan 2014.
Options come in lots of 100:
6x100x1.46=876+16(commission)=$892 premium
So I paid $892 to be able to buy 600 rimm shares at $10 from now until jan 2014. This is a good way to lower your risk while also being able to increase your ability to collect a bigger reward.Knightcrawler likes this.10-22-12 09:11 AMLike 1 - I am not sure that I would recommend buying options for beginners.
It is a very sophisticated method of gambling...
What happens if RIM doesn't make it to $10?10-22-12 09:14 AMLike 0 - Then you lose the premium which is $892 in my case. But, you can sell the options back anytime before the expiry date. Most people don't actually exercise the options they just sell them back on the market at a higher premium. I feel like options are less risky than buying the stock outright. Worst case scenario rimm goes bankrupt, and the stock goes to $0 tomm (not likely). I lose $890, whereas someone who bought 600 shares of rimm at $8 loses $4800Thunderbuck likes this.10-22-12 09:36 AMLike 1
- Investing always involves risk. Do not ever invest if you can't afford to lose the entire investment.
Some basics; stocks are usually sold in blocks of 100 shares minimum. Below 100 shares is called an "Odd Lot" and there is an additional charge for buying and selling odd lots.
There are discount brokerages (which all advertise heavily) that charge minimal commissions. Depending on where you are located (what country) it can be as low as $10-$20 a trade.10-22-12 09:49 AMLike 0 - RIM isn't going bankrupt so even I don't think that is a risk.
You can call your bank as they may have a brokerage group - it wouldn't hurt! The broker fee is charged at the purchase and (eventually) at the sale.
Good luck investigating. It's gambling but way more stressfulWasp14 likes this.10-22-12 10:11 AMLike 1 - @Crackedberry, are you trying to imply that analysts are normally correct? Your post above show only one thing and you have it in common with most if not all analysts. You really don't know what RIM has planned. Now that doesn't sound very important but causes everyone to make guesses, no matter how good you are its still just a guess.
THE most important factor for RIMs stock is sales. The second after BB10 is out is what RIM is doing to beat the competition. Right now it looks like Vehicle Infotainment and how they leverage the NOC.
That is the Macro look at RIM in a nutshell.
Looking closer they need to execute on APPS and the overall user experience. If we see big name apps then the ball won't stop rolling IMO.
We need to see evidence first to believe but by then the market has already moved the price to where we need more proof to invest. Anyway food for thought.
Firstly: Yes, most analysts know what they're talking about. And yes they know some or much of what RIMs plans are, depending on which analyst it is. They don't just make qualified guesses, analysts have sources with suppliers, sources with retailers, sources with telco's and obviously sources with manufacturers themselves. Analysts know more than moats journalists (or even Crackberry Kevin, who from time to time mentions stuff "he can't talk about") Have you ever had a frank talk with any executive at RIM? Well, a lot of analysts have. It's their job to know what's going on there (and the management obviously takes these opportunities to try and talk up their stock).
Secondly: RIM doesn't have any particular advantage in Vehicle Infotainment. That some car manufacturers use a QNX kernel is completely insignificant, as their form of QNX is a very long way away from BB10. It will be just as easy for an iPhone or Android device to work together with the vehicle computer as with a BB10 device. (Lots of manufacturers also use a Windows Embedded kernel in their vehicles, for example. That doesn't give Microsoft or Windows 8 any particular advantage.)
But anyways, what is most important is that RIM is several years too late with BB10. And unfortunately, they can execute perfectly and STILL fail. They can launch BB10 to great reviews and still not sell what they need to sell (look at Palm, for example. Most reviewers loved their products). They can even finally get traction in regards to apps and the big apps manufacturers and STILL not get traction in the market and sales.
Cause the ugly truth is, that the vast majority of people are quite happy with their iPhone or Android phone, and aren't looking for another device or another OS, but would rather prefer to stay with what works for them.
WindowsPhone is a very telling example at this.
So that's why I'd warn people to stay far away from RIM stocks, even as a gamble. There are better bets out there, and unfortunately, there might just not be a market for BB10 and RIM left. Look at the Playbook. They're practically throwing it in people's faces for 99$ or 199$ and they still only sold 120.000 or so last quarter.10-22-12 10:30 AMLike 0 - First a ponzi scheme and now RIMM? Your parents sound like the kind of clients that less savory investment advisers like to call "an easy mark"10-22-12 10:39 AMLike 0
- ThunderbuckRetired Moderator
The success of BB10 is going to depend on how disruptive it turns out to be. I realize many here don't see the potential for disruption (i.e. "BB10 doesn't look any different from Android/iOS"), but RIM still holds some advantages in this market with their proprietary network (BIS) and some significant UI features ("peek/flow"). ALSO: smartphones are not a mature market; there's still a huge body of potential customers who have never purchased a smartphone, but are likely to in the next couple of years. No question that Android and iOS have an edge on that market, but neither has a lock.
My take (based completely on my own assessment--your mileage may vary): BB10 will launch next quarter and benefit from some pent-up demand (and hopefully some effective marketing). With a decent start of 3-5 million sales by the end of Q2, RIM will be back in the black and worth somewhat more than $10/share a year from now. Let me repeat, that is absolutely my own opinion and I may be eating my words.10-22-12 10:54 AMLike 0 - Before buying any stock look at what you are paying else where for things. If you have any credit card bills you should pay them off before investing in RIM. Another better investment is make an extra mortgage payment each month rather than risking it on RIM. Just something to think about.10-22-12 11:52 AMLike 0
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