The Smartphone War of 2010 -- And The Winner Is...?
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RESEARCH IN MOTION | A TRADER’S VIEW
In this Briefing on RIM, we note that traders are watching for two things: (1) RIM’s Bold 9700 and touchscreen based STORM2 products’ holiday season kick-off, and (2) a potential RIM killer in the ANDROID mobile device operating system from Google, being rolled out now by Motorola as their DROID Phone.
These two heavy-weights plus a growing list of other top contenders for the smartphone market has shaken traders so much that RIMM’s historical PE of 27 has been chopped in half, despite continuing evidence that the Compound Annual Growth Rate (CAGR) for revenues and earnings remains at spectacular levels.
But, if there is a possible sea-change ahead, the smart money will always move its chips off the table until there is a heightened clarity of issues. At this point, nobody knows for certain how the smartphone industry is going to develop. The stakes are huge, but the outcome will not be decided by hype. Traders are looking hard at the research instead.
Research In Motion is an important Canadian company, followed closely by most investment analysts in Canada, many of them – in typical Canadian fashion – very good at their job. Every analyst is biased to an extent.Being a Canadian,being a RIM BlackBerry user, having RIM in the select Cara 100 world’s highest quality companies list, and having been educated in undergraduate business school at WLU in Waterloo, RIM’s hometown, I admit to a RIM bias.
But I am not a “friend”. Like you, I am here to make money.
[continued in the attached report]
| Attachment | Size |
|---|---|
| 07CTARIMbrief11092009.pdf | 7.28 MB |
