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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: UnBelievable who wrote (62393)	11/8/2000 5:28:08 PM
From: UnBelievable	Read Replies (1) \| Respond to of 122087

RIMM Research in Motion Shares Already Reflect Strong Market Position by Todd P. Bernier \| 06:14 PM \| 09-28-00 \| E-mail Article to a Friend What Happened? After Thursday's close, Canadian wireless device maker Research In Motion RIMM reported results for its August quarter, showing a loss per share of $0.02 and bettering the First Call estimated loss of $0.03. Driving this was a sharp jump in revenue, up 57% from the last quarter and 121% from a year ago, to a record $43 million. To maintain this sales momentum, the firm has cranked up its spending on research and development and marketing. What It Means for Investors Although the company's aggressive spending will stunt profits over the next two fiscal years, we believe that RIM is on the right track as it capitalizes on its expertise in two-way wireless technology to build market share and shield itself from the onslaught of future competing products. RIM's BlackBerry wireless devices are increasingly penetrating Corporate America, and are becoming the standard for busy employees who want real-time e-mail access outside the office. We believe that the biggest concern for investors is RIM's richly valued stock, which has more than doubled since May-quarter results were announced in late June. The catalyst behind its soaring stock price is a growing exuberance among momentum investors. At the end of the May quarter, RIM's shares traded hands at a price/annualized sales multiple of 26 times; that multiple has expanded to roughly 40. Given that momentum is a double-edge sword, RIM shareholders may face a lot of downside if market sentiment ever shifts.