1. mikeo007's Avatar
    Rather large article about RIM stock over at Seeking Alpha, so I won't attempt to copy/paste it here.

    RIM Is Cheap But We Still Wouldn't Touch It - Seeking Alpha

    This article is confusing me though. They're actually saying that they believe RIM stock is undervalued right now: "In Research In Motion's (RIMM) case, we think the firm is undervalued. We think it is fairly valued at $14 per share."

    So any of the stock gurus around here, why is RIM still a no-touch from a reputable financial site? Are they still just hung up on the uncertainties about RIM's future, or is there a reason not to buy an under-valued stock in the tech market?
    11-13-12 08:13 PM
  2. cjcampbell's Avatar
    I can't answer your question but can speculate.... People are what drives stock... people don't do real research.. people don't realize the true value of a company (QNX, Paritech etc..)... and therefore yes, BB stock is valued higher than it's true worth because when you see RIM, you automatically see BlackBerry. Not the billions it's worth in patents alone, but the value on the smartphone market. This happens a lot, from what I understand, and in these situations, its a win win..... if you buy and they go belly up, they liquidate and you'll come out on top. If they're successful, you're on top. I have no doubt that the latter will come true, and in fold, but I really have no idea what I'm talking about.
    11-13-12 11:42 PM
  3. Nindia's Avatar
    Markets aren't very nice right now to any company.

    Apple is off over $150 from their all time high just a little over a month ago. They're trading at a lower multiple than Microsoft and Google. If Apple was trading at the same multiple as Google, it would be at around roughly $900 per share right now.

    There's the obvious uncertainty from the general public with how well BB10 will do once it launches and analysts aren't going to tell their clients to dive in on RIM because there's still a risk in their eyes.

    At the end of the day, do your own due diligence and invest because you yourself have confidence in the stock. The majority of these analysts have vested interests in seeing certain stocks rise or fall. The markets are manipulated, they are not what they used to be.
    11-14-12 01:43 AM
  4. howarmat's Avatar
    easy answer is you still have Dec 20th to go through. Once you get that out of the way you hopefully have all good news from then on.
    11-14-12 01:53 AM
  5. gtpointer's Avatar
    I haven't read the article, but from the summary it's clearly rubbish. Regardless of what the stock's true value is and the reasons for this, if they think it is worth $14 and it's currently around $8, they should buy. Not wanting to buy means they think it's risky, but that should be priced into their fair value. So if they don't want to buy they clearly think it's at its right value/over-valued at the moment. Fair value is assets + future cash flows with risk factored in. It is based upon it as a going concern. Arguably RIM's immediate liquidation value is higher than its fair value because the market currently expects future cash flows to be negative. Maybe by fair value they mean liquidation value, but then it's not a very useful article, merely saying RIM is worth less than its NBV, but for good reason, as the market has already worked out. So the authors are either idiots or time wasters. I'm inclined to go with both, but take your pick.
    11-14-12 05:16 PM
  6. Shanerredflag's Avatar
    Analysts try to quantify their "guesses" with reasonable explanations, mathematical equations and all kinds of what appears to be common sense approaches...are they correct....hardly, but sometimes yes.
    It's the "klondike" approach, most miners during the klondike gold rush went broke (investors)...the people who made millions where the ones selling the supplies, maps and pick axes (analysts).
    11-14-12 06:35 PM

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