NASDAQ:RIMM
$66.80
(2/9 10:23AM)
+0.2%
| Open | $67.45 |
Mkt Cap | $37.0 Billion |
| High | $67.62 |
52Wk High | $88.08 |
| Low | $66.04 |
52Wk Low | $35.05 |
| Volume | 3.0 Million |
Avg Vol 10D | 14.9 Million |
Ockham's Rating/Recommendation Summary
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RIMM Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at RIMM through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 9.62x and 3.10x respectively.
Utilizing this range we can see that RIMM’s current Price to Sales per share ratio of 2.63x is significantly below its average levels historically. In fact, with a current price of $67.75, RIMM is a full 59% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for RIMM.
RIMM Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently RIMM is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 8 years of cash earnings levels for RIMM to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 40.02 and a 13.69 low over the same period.
Now that RIMM’s current price is $67.75 and its Price to Cash Earnings ratio is 13.36, we are very positive on its outlook from the cash earnings perspective. In fact, RIMM is now trading a full 51% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why RIMM has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
RIMM Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for RIMM to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. Although they may currently pay a dividend, our data source has no historical record of it for RIMM. Since we cannot apply our historical trend analysis to dividends for RIMM we have a neutral score for the dividend portion of our analysis.
RIMM Gets Mentioned in the Financial Media
As always, the latest news on RIMM is available to Ockham clients through RazorWire, and it was mentioned recently on Imus In The Morning.
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Learn About RazorWire?Imus In The Morning Discussed the Latest Development of Research In Motion Limited
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Research In Motion Limited.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Imus In The Morning said about RESEARCH IN MOTION LIMITED
Learn About RazorWire?Research In Motion Limited Talked About Near M&A Discussion on Tech Trader Daily-Barron's
News broke today regarding mergers and acquisitions and Research In Motion Limited was discussed as well on Tech Trader Daily-Barron's. Other sources will be required to know exactly what the context was in the discussion.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, RIMM has been less covered in the news compared to the rest of our universe of stocks. We consider RIMM as Undervalued at the current price of $67.90. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Research In Motion Limited will perform just about the same as the index.
“… Or RESEARCH IN MOTION (RIMM). Or even - why not think big! - Nokia (NOK). Swisher writes that “many sources at Microsoft” say CEO Steve Ballmer has expressed interest in ... …”
Stay Current on RIMM's News on Power Lunch
News has broken via the television and viral blogs regarding RIMM, so investors should take an interest in learning what was said.
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Learn About RazorWire?The Outlook for Emerging Markets and Research In Motion Limited Discussed on Zero Hedge
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of RIMM on Zero Hedge was in relation to emerging markets.
Based on our methodology, Research In Motion Limited should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; RIMM has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… There are some notable exceptions, mostly in the resource sector and also Canada’s RESEARCH IN MOTION. The portfolio included ETFs to gain exposure to China, Japan, emerging ... …”
RIMM Gets Mentioned in the Financial Media
The latest news from Power Lunch on RIMM is available through Ockham's news analytics platform RazorWire.
Based on our methodology, Research In Motion Limited should hold some appeal to value investors as we view it as Undervalued. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; RIMM has received less coverage from the financial media in business television and blogs.
“… RESEARCH IN MOTION a half percent. The nasdaq itself is down. 5% since we hit those mid-january 15-month highs or so and you've seen a real decline in the technology stocks and ... …”
Research In Motion Limited News is Being Covered Right Now on Closing Bell
As always, the latest news on RIMM is available to Ockham clients through RazorWire, and it was mentioned recently on Closing Bell.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Research In Motion Limited has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on RIMM, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards RIMM and think that it will generally perform in-line with the S&P 500.
“… RESEARCH IN MOTION, apple and google. Apple was one of the weakest of the day. You look at apple and google, about 9% to the downside year to date, underperforming yet again. …”
Bullish/Bearish: Sentiment and RIMM Discussed on Closing Bell
Closing Bell talked about the sentiment surrounding RIMM and the way they are perceived in the marketplace.
We noticed recently that in comparison to all other stocks we analyze in the news; RIMM has received less coverage from the financial media in business television and blogs. Based on our methodology, Research In Motion Limited should hold some appeal to value investors as we view it as Undervalued. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… Take a look at a few big cap names, RESEARCH IN MOTION down 2. 4%, apple down 3%. Google down 2. 3%. Cisco has given away . 2 in the last few minutes. Strong ner the last ... …”
See More News on RIMM from Street Signs
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Research In Motion Limited.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards RIMM and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Research In Motion Limited has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on RIMM, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… RESEARCH IN MOTION 2%. Intel, clip as across the board, smacked. Intel down 3. 4%. Something propping up the dow is cisco. Still holding on a gain after earnings. …”
Investors Sentiment's Effect on Research In Motion Limited on Squawk On The Street
Sentiment and investors' opinions on RIMM were covered on Squawk On The Street recently and RazorWire has captured the news segment.
Based on our methodology, Research In Motion Limited should hold some appeal to value investors as we view it as Undervalued. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; RIMM has received less coverage from the financial media in business television and blogs. The latest news on RIMM has created quite a stir as the stock is trading $4.01 higher in today's session.
“… RESEARCH IN MOTION had a positive mention of credit suisse up 0. 4. Yahoo was positive. Just went negative down 0. 7%. In terms of retail names, a mixed picture. . …”