Will RIM’s Stock Ever Return To Prominence?
Research In Motion has $2.07 billion in cash and no debt. It doesn’t get much better than that in this industry unless you’re Apple, which has $29.13 billion in cash and no debt. Nokia has $10.99 billion in cash and $5.15 billion in debt.
T = Technicals on the Stock Chart Are Poor
Research In Motion has outperformed the S&P 500 for the past month, but it has greatly underperformed the S&P 500 over the past three years.
Over the past month, Research In Motion is up 46.63% while the S&P 500 is down .66%. Year-to-date, Research In Motion is down 23.45% while the S&P 500 is up 13.50%. Over the past calendar year, Research In Motion is down 32.65% while the S&P 500 is up 23.48%. When you look at three-year returns, Research In Motion is down a massive 80.91% while the S&P 500 is up 36.46%.
At $11.10, Research In Motion is trading close to its 50-day SMA of $11.07. It’s also trading close to its 100-day SMA and 200-day SMA of $11.11. Yes, they’re the same number.
E = Earnings And Revenue Are Only Steady On An Annual Basis
Earnings have been steady and revenue growth has been impressive over the past five years:
|Revenue ($)in billions||6.01||11.06||14.95||19.91||18.44|
|Diluted EPS ($)||2.26||3.30||4.31||6.34||2.22|
The quarterly numbers haven’t been as impressive:
|Revenue ($)in billions||4.17||5.17||4.19||2.81||2.87|
|Diluted EPS ($)||.63||.51||-.24||-.99||-.45|
T = Trends Support the Industry
Mobile is huge right now. It’s one of the fastest growing businesses in the world. At the current time, only 46% of Americans own a mobile device. This means there are almost 150 million people in United States without a mobile device. That’s a tremendous untapped market. And that’s just the United States. The problem for Research In Motion is…