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To: Chad Barrett who wrote (35496)4/17/2000 5:58:00 PM
From: Swami  Respond to of 62348
 
Market seems to be focussing first on stocks with revenues and cash flow first that is why i bought ATY @24 with PE of 24 it is a bargain...RIM PE is too high not that it mattered in the past..



To: Chad Barrett who wrote (35496)4/17/2000 6:15:00 PM
From: blue_chip  Read Replies (1) | Respond to of 62348
 
Chad - Re RIM
Some thoughts on whats wrong with RIM
1. I have heard that revenues may no have been good as many thought. It is possible that because of the last financing RIM had and their cash flush position interest income contributed to revenues, therefore what people actually think are all device revenues are not (I have not verified this or examined the financials myself, so I suggest you do so before you take my word for it)
2. I think people get a bad taste in their mouth when a Company with such a huge market cap is getting government help. (or such a formerly high market cap)
3. RIM formerly said that consumers did not want cell phones and devices with advanced features, suddenly because of the Government funding they are backtracking. Maybe people are questioning how well they know the market.
4. RIM launched a new devices, that is suddenly looking more like a palm pilot. The new device is a change in strategies and acknowledges what palm and others are doing in development. The are also only now going to go for WAP compatibility whereas their competition was already going for it.
4. Pocket PC is being launched in Grand Central Station on Wednesday microsoft.com
Compare the RIM device rim.net
vs the pocket PC devices
microsoft.com
microsoft.com

Which would you rather have?

I cannot say I am right. RIM got an early market lead, yet their devices seems to lag behind all the new ones coming out. It is also nowhere near as functional as the pocket PC devices. By going after the Palm type devices suddenly RIM had head to head competition with the big manufacturers. RIM is coming after their turf and are acknowledging others direction rather others entering theirs.

Honeymoon Over?

Chip