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Strategies & Market Trends : Fundamental Value Investing

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To: tyc:> who wrote (1837)	7/12/2012 8:47:11 PM
From: Sergio H	1 Recommendation Read Replies (2) of 4719

I am not familiar with Haugen's work. Buffett likely would reject RIMM because it is a technology company. There are many high tech companies that have gone out of business and evaporated. If Haugen's books indicate that major companies do not die, I have to disagree. I agree with you that if RIMM survives it will take a while to recover and also agree with you pointing out that they have cash. But, won't they have to spend that cash to roll out new product? RIMM could be swallowed up by one of the larger companies just for its patents and it would not be an expensive acquisition. So, from that point of view, I could see RIMM as a value play. For me though, there's a ton of bad news that just came out that hasn't been digested and its a mean market, so I don't see RIMM bottoming out just yet. Right now, the market is likely to price RIMM's shares for its cash plus assets including the value of its patents. Thanks again and the above is just my opinion. We'll include RIMM for the voting process and let's see what others think.

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