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 $11.11. Yes, they’re the same number.
E = Earnings And Revenue Are Only Steady On An Annual Basis
Earnings have been steady and revenue growth has been impressive over the past five years:
| 2008 | 2009 | 2010 | 2011 | 2012 | |
| Revenue ($)in billions | 6.01 | 11.06 | 14.95 | 19.91 | 18.44 |
| Diluted EPS ($) | 2.26 | 3.30 | 4.31 | 6.34 | 2.22 |
The quarterly numbers haven’t been as impressive:
| 8/2011 | 11/2011 | 2/2012 | 5/2012 | 8/2012 | |
| Revenue ($)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…
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