it's funny that they don't even sell RIMM LEAPs anywhere near this price, they now sell higher priced options for closer months, but those just started trading today...that gives you an idea how far above any expectations this report was, and makes it a bit unlikely IMHO that today is the top in the stock...short term the path of least resistance might be down a little bit, but it could just as easily continue higher as it has no overhead supply at all, and it seems doubtful anyone will downgrade it even on a valuation basis this soon after an awesome report which will cause the estimates to soar
certainly it appears at first glance that RIMM is a bit ahead of itself at this point, but if the current quarter's estimate now goes to about .50 from .22, and next year's goes to perhaps 2.50 or more from the current 1.04, how overvalued is it? on CNBC today they talked about the company getting a software type valuation instead of a hardware valuation, and that would give it a multiple of 30 to 40, perhaps even higher with the huge growth that they are forecasting
the key point seems to be that they are selling the units in quantity to business customers, and selling other equipment and software along with them, and they are licensing their software so even when they don't get a sale, they often get revenue from whoever does get the sale and sells a competing product...the key of course is can they continue the growth longer term, as once you've bought them for your company how soon do you need to buy them again, or can they do enough licensing and service revenue to continue to grow? i don't have a clue, but i sure wouldn't be shorting it now
how would you like to be this henry van der eb guy? LOL....OUCH!! i'm thinking the 71M gabelli mathers fund just became the much less than 71M gabelli mathers fund <G>
forbes.com
actually, look at the performance and holdings of that fund on yahoo:
finance.yahoo.com
he has 99.4% cash (as pure as ivory snow?) and apparently has been all in cash since getting spooked out of the market last august (2002)....and they are asking this guy for investment advice? LOL LOL...unbelievable
carl |
