Posted on Wednesday, 28th October 2009 by admin
During its last quarter update, RIM has shown disappointing results. It shares drop like a heavy rock in water. However, there are several reasons why RIM is still a buy.
The creator of the BlackBerry, this magical little piece of plastic, should not be left for dead as it still has strong points in its favour.
5 Reasons why RIM is a BUY
#1 RIM’s Competitive Advantages Intact:
Several people (aka CrackBerries) are used to the BlackBerry ways of working and wouldn’t trade it.
Battery life is a major advantage for RIM since no other phone lasts longer.
Competitive gaps in term of browsing and cell phone applications should keep RIM ahead of the competition and keep the stock as a buy.
#2 Don’t fear moderating ASPs. Recent ASPs drops don’t come from competitive pressure but more from RIM new positioning to penetrate the mainstream smartphone market.
#3 Strong market growth for smartphones. With new RIM positioning to penetrate this market combined to growth forecast of 40% in the smartphone market, RIM will see its profit bursting in a few years.
#4 Healthy margins for RIM. Supply chain efficiency provides RIM with high profit margin that will keep RIM as a buy for the upcoming year.
#5 New products ahead. RIM is actually working on several new products that should consolidate its position as the leader of all smartphone.
Still not convinced that RIM is a buy?
You should take a look at this graph and notice how the iPhone is getting market shares from Palm and RIM’s remain untouched.
Definitely, RIM is a BUY!
image source: businessinsider.com
Posted in Best Stocks in 2009 | Comments (2)
October 31st, 2009 at 10:42 am
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November 4th, 2009 at 5:43 am
[...] presents 5 reasons why RIM is a buy posted at Buy My Stock [...]