RIMM Stock Report
2-Year Price History
Recent Price
(7/2 4:00PM)
-0.4%
$69.71
52-Week Price
$35.05 - $135.00
Market Capitalization
$39.5 Billion
Most Recent Dividend
$0.00
Ockham's Rating
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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 11.36x and 3.45x respectively.
Utilizing this range we can see that RIMM’s current Price to Sales per share ratio of 2.42x is significantly below its average levels historically. In fact, with a current price of $69.71, RIMM is a full 68% 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
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. RIMM is significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from RIMM. For example, RIMM's Cash Earnings ratio per share has fluctuated between 17.04 and 50.34 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where RIMM is with respect to prior business periods.
So with RIMM's current price (latest close of $69.71) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, RIMM is 48% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with RIMM.
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.
The latest TV Media Discussion
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“…I to point out quickly, deutsche bank has raised its price target to basically to 374, it's trading at 288. And RESEARCH IN MOTION, of all of the popular big caps, this is the only one in positive let's go down to sharon at the >> brian, you want to talk about records? …” …more details…
“…Heavy hitters underperforming. Yahoo! Microsoft, oracle, ebay, struggling. The search for green arrows, what few green arrows he had over there at the nyse. RESEARCH IN MOTION is the only major big cap I can find. Up 1%. Chips out performing, broad come had been up earlier. It slipped into negative we have novelis up. …” …more details…
“…Somewhere in the $100 to $200 some of them are as much as $700 for the series. It's too much money and they'll lose the smartphone percentage and right now RESEARCH IN MOTION has 20%, nokia will lose that >> I think oracle is here with the tight stop. I think above 22 and you blow …” …more details…
“…300,000 units have been sold. Now they're looking to a million for a quarter. Palm is starting to produce even more than anyone expected. You've got to like the fact that it does come with an operating system. RESEARCH IN MOTION and the consolidation near 70. This is a stock that made a huge run from 49 all of the way up to 85 into the earnings number. The fact that it's consolidating down to 70, I think you're finding yourself a nice footing …” …more details…
“…And the -- in fact, we're really performing against the trend. Up about 2% in june. 19% in the quarter. 22% year to date. RESEARCH IN MOTION, one of the standouts and intel one of the best performers in the dow, the best performer in the dow in the quarter was bank of america. Today it was hung in there for part of the time but closed down …” …more details…
“…Global top 40 list couldn't eke it out today. It's down 2% there. Prudential financial getting a downgrade from moody's. Look at the telecom names. This morning, RESEARCH IN MOTION was started at an outperform by bmo. You can see the RESEARCH IN MOTION was the one with the up arrow. The other names, motorola and erickson got market perform and nokia underperform. Other names, retailers and the movers, but we're …” …more details…
“…With many saying the company got legs to go in the second half with new products in the the market share to grap. Not to say that palm comes at the expense of the other players, including RESEARCH IN MOTION and nokia. What about apple? I phone sales sell well and the same with max and ipod and steve jobs is back to work. …” …more details…
“…>>> RESEARCH IN MOTION. Up almost 2% on the trading session, initiating coverage with an outperform above $70 right now on RESEARCH IN MOTION. $70.98. >> consequence us building for a …” …more details…
“…Let's take a look at the losers for the day. Cisco down 2.3%. Ebay and yahoo also underperforming by a wide but on the flip side of the coin, we do have RESEARCH IN MOTION, some positive words today from bmo, and amazon getting an upgrade. And we talked about the deal …” …more details…
“…The credit rating on through and you can see with down arrows, a lot of down arrows uncertainly to report here this morning, but certainly we've seen such a great run for the quarter. O coming out with some of the telecom names and RESEARCH IN MOTION being the big winner on this group so certainly take a look how the names are faring and baird with the retailers, and coach and nordstrom the two that seem to be benefitting and RESEARCH IN MOTION is one of the ones they talked positively the up arrow there and we have the commodities pulling back and we've seen some strength in the dollar and so we are seeing oil below that, $70 a barrel mark. It's interesting, because a lot of the traders are bringing in …” …more details…
“…Sun microand baidu seagate, all up. RESEARCH IN MOTION, up today. Chip sector. Semiconductor weakening but still in positive territory. Intel up 0.2%. …” …more details…
“…I like palm, I don't like it i'd rather trade it down to >> you got into palm -- >> no, I said i've been wrong on i'm playing RIMM. RIMM is the smart phone you need to have. >> there you have it the smart phone trade. >>> coming up guy adami. …” …more details…
“…They came out and said their new notebook that's catered through the k through 12 market has got they're up 1.2%. Take a look at some of the heavy hit, two of which are really underperforming. RESEARCH IN MOTION has weakened. Down 1.1%. Google right around the flat line, down .1%. And cisco up .2%. I did want to -- if you saw this on "street signs" I wanted to point out the for-profit …” …more details…
“…Microsoft strong still. Up 2%. 1.8% in this market. Very good. Some of the other widely helds to point out, apple is positive to negative. RESEARCH IN MOTION down almost down .6 of 1%. Biogen, another bad case of the rare brain disorder, down 6%. …” …more details…
“…>> you said on the "halftime report" you were a buyer of the smartphone makers and they were up across the board. Did you buy even though they spiked higher? I bought RIMM at the end of the day. I bought RIMM aggressively. I am still long on RIMM. That's the play for me. Guy nailed apple to a "t." he said 132.50 is the spot to buy it. Traded at 132 today. That was the chance to get in. You were waiting for RIMM to go below 70 and it spiked way bought that and you bought. Confidence with the numbers I saw come out of palm today, clearly the performance that i'm seeing out of apple, the entire smartphone trade is a place I …” …more details…
“…They are selling 100 million units per quarter but all the $10, $20, $30. They will use it to the RESEARCH IN MOTION and iphone. I love nokia as much as you do. >> I think they have both spectrums. They have the cheap handsets and the access into the low and medium-level consumer in the …” …more details…
“…Feeling pretty good over there at palm even though they're still, still reporting a pretty sizeable loss. >> do you think the strong numbers today are the pie is getting bigger or that they're taking shares from RIMM or apple or somewhere else? >> that's a really good question. I think the pie is if you look at 11% smart phone penetration globally, 19% here in the united states, john …” …more details…
“…Is a billion units market and you don't have to be nokia and you could have a small fraction and sell millions of units and the bad news is, prices are coming down, and the same time you have to put in more money, to make them more complex, and RESEARCH IN MOTION, is finding this and apple's gross margin is coming down, and selling $99 phones and from a stock perspective, if you are palm and you have 255 million dollars, in the entire company, and you have …” …more details…
“…>> dpoks business a-- fox business alert, palm, rim and am, palm up 14% an apple holding steady and RESEARCH IN MOTION down a bit, and let's dig into key issues facing the three competitors, and who will come out ahead? And -- in touch-screen tech and who -- and barron's tyranny ray …” …more details…
“…Oracle oracle's quarter beating on the bottom line. Healthy revenues. Margins better than expected and the company boosting its outlook. We're also seeing handset players doing well. RESEARCH IN MOTION are in talks with china's telecom to bring the blackberry to china. That would be a huge market obviously and palm up 2% ahead of its earnings on thursday. A couple of analysts saying the …” …more details…
“…Until june. >> volatility index speaks this is a trader's market. It is difficult to be an it is a trader's market. Every one of these stocks is giving you a second chance. RESEARCH IN MOTION was trading $83 a week ago. You got an opportunity to get in under $70 today. Take a look at boeing. Boeing was over $50 a week or two ago off that news oh suddenly united will buy all these planes. …” …more details…
“…I think today what was positive actually, what was positive about the market performance is you have the resumption again of the dollar weakness trade. Energy names. They came back again. Even names like RIMM. I bought some RIMM today. The financials came back. >> at what level did you buy e >> I was able to get RIMM underneath $70, which we talked about getting it at $73. I stepped in, finally got into we've been looking to buy RIMM. Financials were great performers jp morgan, goldman sachs, morgan stanley. I bought morgan stanley. I covered my oih and RIMM. The baskins robbins flavor of the day was back. >> real stirring around. I think guys are taking profit, …” …more details…
“…It is a good place to hide in this market. They are delivering what the customer needs. I'll take that measly 1%. I'll take it. >> why not? RIMM was down 6%. >> let's add something we had with jimmy goldman before on apple and RIMM. When you look at the spike in the vix, names like apple and RIMM do not perform well when you see the lift in the vix. You are seeing the lift in the vix right now. I want to own RIMM, but I don't want to own it yet until we see volatility come in. >> drop here for mow yake down >> this fits my same argument of …” …more details…
“…Lower down 35 by march. I don't think it's going much lower than 60, 65, but this is a trade we were talking about. Now at least you have an opportunity of keeping your powder dry. RIMM moves lower from here, ape many moves lower, but at least now you have levels that make >> I told you last week I wanted to buy RIMM at 73. I never bought RIMM at 73. RIMM is continuing to move do I want to buy RIMM? In the face of this tape, i'm guy's been right on this one. 60, 65. When you target 60 to 65? That generally means you may see 55 to 60. That's where I get the …” …more details…
“…>> let's move on to the next technology was one to watch nasdaq the worst performing of the three major averages. RIMM and microsoft leading them south today. The tech sector is the best this year up 15 pfrmts this year. >> absolutely. We talked about RIMM last week.E if you are getting in around 73, 73.5, you are probably early. In december the stock went from 35, trading 58 or so when they …” …more details…
“…Drug stocks. The revenues were in line. It brought down the drug company stocks as well. Number five, RESEARCH IN MOTION and palm as well. Both stocks are down after apple hit it out of the park with the iphone, selling more than a million unit. Apple stock is down. RESEARCH IN MOTION is down number four, serious xm believe it or not, the stock is up because they said they're going to offer 350 million in senior secured notes and use proceeds to …” …more details…
“…All the usual suspects are up on the word. The quadruple or triple "q" fz you want tos if you want to call them that. RESEARCH IN MOTION negative news after apple sold 1 million 3gs phone. Microsoft, the biggest company trading here. When the stock is down you see similar reaction in composite. Now. There are five stocks in the …” …more details…
“…Than import. Not giving bullish fundamentally. Wall street and best buy and RESEARCH IN MOTION with disappointing earning report. Things are not looking bullish in the near term. Talk about the earnings and the to passty interrupting -- …” …more details…
“…Really apple is outperforming and you've got to think about the fact apple is up about 60% year to date. Huge moves. Palm has been up 300% year to RESEARCH IN MOTION has been up about 70% year to date. With these guys being drawn down today we get the nasdaq now flat, slightly negative for the month, and the chips are the …” …more details…
“…Times" today got us wondering -- is it polite to use your blackberry in meetings? >> I don't think -- >> I do it all the type. >> it's old school. No offense against RESEARCH IN MOTION, I would give this back in a minute if I could. >> there's the flip side of the question, though, that comes down to should you be in response to people who are sending your e-mails on your …” …more details…
“…Graduation got me 2009 dollars to invest, so i'm new at investing. In terms of tech, should I get, like, apple, google, RIMM or >> well, I have to tell you, I decided after looking at the RESEARCH IN MOTION quarter last night and I spent a lot of time on the quarter, spent a lot of time on the call, that's the first quarter that I really don't like from RIMM. We're not going to do that. I want to replace in the four horsemen with qualcomm, which is the stock I own for my trust. I think you should try to figure …” …more details…
“…Available as of this week. And, you know, this was big news for sirius xm but it kind of got lost with all the other major headlines that iphone 3g s and RIMM and all the other wireless news we are covering has been but this is significant, and the folks at sirius xm say that this app is now on pace to possibly eclipse the record set by skype, …” …more details…
“…>> what a reversal in materials, freeport-mcmoran speaks as loudly and clearly as anybody. Down 13%. >> horrible week for copper prices. This is a similar situation to what guy highlighted with RIMM trading around $50. I think it has to go below $50 before it resumes. >> and vijay singh notes that the golfer was still sporting …” …more details…
“…Unit sales. >> $14, I agree, it's a global I think they have yet to whip out a phone if you will that really competes with the iphone and RIMM products, but I agree, there's upside potential with the downside movement in the stock and it's a call in itself at $14.50. >> and you can never be long norway enough, right, guy? …” …more details…
“…Trading 35. Today it traded 45 million shares. I think now it trades down to 66.5 as joe said. I think it makes the 50% correction and then I think you can look at RIMM. But I think got in too early. >> we don't have time to find unit. >>> microsoft closing higher as goldman sachs adds them to the conviction buy list, some say …” …more details…
“…Position I now look back at last evening's conversation, I think guy's dead on. 60s first. Moves higher. >> yesterday I said if you're going to buy RIMM, tell the july call, it's selling for $1.50 today, you made $3.50 on the down side. I think that's the way you need to approach the earnings. I don't think any investor can …” …more details…
“…So that's a disappointment. >> trade this thing this morning after coming in and seeing RIMM crawling back to be up a hair on the day and gapping down 5%. The trade. They thought RIMM would recover with apple and microsoft today. It's a dangerous stock at these levels because there's a lot of guys speculating. The option has been insane. >> the disappointment in RIMM clearly was the unit shift. It came in south of 8 million. It was disappoint. The guidance was disappointing. People that don't have a position generally have the most objective view and having a position I now look back at last …” …more details…
“…Going forward a lot of the phones are going to attract a different market segment. Margins from 45% to 45% will not the competition, we've been talking about RIMM and pre, we're talking about the space that is getting more complicated for the guys to make money. >> sorry, jim, go ahead. Complicated. It's more complicated. It's certainly more competitive, …” …more details…
“…Got close. I still think it goes there. Jpmorgan you can be trading on the short side around these there are a number of things out there. I think RIMM trades down. RIMM is setting up. There are smart trades there I think the broader market goes down. >> simple observation from the house, the 200-day moving average is the new baltic dry everyone's talking about it. …” …more details…