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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mattyice who wrote (46069)	1/14/2012 6:48:16 AM
From: Moj Jalali	Read Replies (3) \| Respond to of 78702

Matt, I think RIMM's north american business is suffering but what's your take on their scope in developing markets? For example, in India the 3g capabilities within the country are not well developed making the iPhone virtually useless there. At the same time BlackBerry is growing its user base and increasing its distribution channels. I understand that about 61% of revenues come from their north american and UK markets but I am considering the stock as a potential investment based on its head start and favourable demographics in the developing markets. My view of their valuation is more simplistic than the one you put forth. I like to look at their values across time and their pre crisis valuations. In 2007/08 prices average above $100/share giving it a market cap of about $60b. At the time its earnings were half what they are now. The only thing they had going for them at that point was a favourable trend. Today the company makes more than double that and its equity is valued at 1/7th the price of 07/08. I think the market believes that not only does the company have a bleak future but that it might not have one - a very irrational belief don't you think?