Through The Fly's Eyes: Research In Motion

from Theflyonthewall.com






Use Price Weakness As Buying Opportunity

Research-In-Motion's (RIMM) stock got hit in last night's after-hours trading as this super-growth smartphone company's results came in-line or slightly below most analyst expectations.

However, the results were quite impressive: RIMM now has 8 million subs, has over 270 networks supporting RIMM around the world, is attacking Latin America very aggressively, and AT&T, which attempted to a big 2006 holiday launch with Samsung's Blackjack, appears to be putting a lot more marketing dollars around RIMM's Blackberry Pearl product.

Regarding its high-end enterprise business, RIMM now has over 100,000 enterprise services around the world.

RIMM is selling for 31x and 25x this and next year's estimated earnings. That is not too expensive for the leading company in a high-growth market.

Historically, when RIMM has not superseded analyst expectations due to investing back in the business or a product transition, it has been a good time to jump into this stock. Use this morning's pull back to get into RIMM.