Verizon Communications Inc. (VZ)
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- Five Reasons RIMM Will Continue to Fall [view article]
- Dogs of the Dow in the Dumpster [view article]
- Bearish on RIMM (Today) - Cramer's Lightning Round (9/25/08) [view article]
- Google's Vision for a Wireless World [view article]
- Year to Date Performance of Dow 30 Members [view article]
- The Google Phone: Blockbuster or Bust? [view article]
- The Advantage of Net Payout Yields [view article]
- Reforming the Patent System [view article]
- Verizon, Tyco, Kraft Raising Dividends In This Tough Market [view article]
- Loss of Integrity - Cramer's Mad Money Recap (9/3/08) [view article]
- Are Text Messaging Prices the Biggest Wireless Issue? [view article]
- Options Trader: Friday Outlook [view article]
loading ...Recent VZ Articles
- Five Reasons RIMM Will Continue to Fall
- Google's Vision for a Wireless World
- The Google Phone: Blockbuster or Bust?
- Reforming the Patent System
- Dogs of the Dow in the Dumpster
- Options Trader: Friday Outlook
- Verizon, Tyco, Kraft Raising Dividends In This Tough Market
- The Advantage of Net Payout Yields
- Are Text Messaging Prices the Biggest Wireless Issue?
- Yahoo and Verizon Extend Their Portal Deal
- Full List of Articles »
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Genius
Five Reasons RIMM Will Continue to Fall [view article]
ok, scratch that 53 buy level on RIMM; looks like it will fall to that today, so plenty of time to buy in at a lower level. pretty crazy to watch a decent company's stock lose 11% in an hour of trading. surely this stock can't fall to 40, or further... ReplyGenius
Five Reasons RIMM Will Continue to Fall [view article]
Agree RIMM was crazy overvalued in the mid hundreds, but I think this valuation goes too far. I exited my entire RIMM position in the hundreds, and also closed out Apple at the same time, and the market then backed me. All that said, I may well be a buyer on RIMM at 53 or so, and Apple at 85. ReplyFive Reasons RIMM Will Continue to Fall [view article]
James - when you write dumb articles that's what happens, this article is a very poor piece the only ones who believe are the ones that don't understand the lingo, the ones that do, know enough to see that his math is off base and he has poor reasoning skills ReplyFive Reasons RIMM Will Continue to Fall [view article]
I did an analysis that was awfully similar to this a year ago when RIMM was around $100. I got plenty of nasty emails, laughed at, mocked, and had mean things said about my mother. I have no opinion on RIMM at present, but hope you'll stick by your convictions... after all, without the people who still believe, how would this fall even more? ReplyFive Reasons RIMM Will Continue to Fall [view article]
Hardware cycles can be modeled in typical economic patterns of commodity. However, what this article fails to outline are the following:1. End-To-End Security which has the highest certification level. All competitors are estimated to be about 3 years shy if they are to compete on the same security turf to penetrate enterprise market as a challenger. Note MS Exchange Active Sync has been supported by Nokia and now Apple and the technology has been out since Exchange 2003 days. However PushEmail still remains unperturbed.
2. RIM's focus on software services to complement their hardware. RIM still owns the key applications that go both on the device and at the cloud. This provides a fantastic end-user experience in terms of quality and 24/7 connectivity for these live devices.
3. Average revenue per unit BlackBerry- This is the most difficult one to understand. RIM takes the traffic hit from the carrier away routing it over its cloud. Along with this data is compressed which means revenue obtained from user for 1Mb data equates to an actual cost of say 100Kb. Which is why Carriers want are will continue to push BlackBerry devices. Note, at the end of the day voice revenue is declining and its the data revenue vertical which is expanding. BlackBerry infrastructure along with their endpoints (devices) are better positoned to support this.
4. Adoption - Recent releases in Japan, India have been huge success. Talks about a Plant in India even makes this adoption more interesting because then the average revenue per device drops significantly.
5. Smart Phone market - The smart phone market is to grow beyond anyone imagination. There are certain geographies that will never experience the internet boom on a PC. Its cheaper to beam over the AIR as opposed to lay cables. Most developing nations such as India is already starting to see this happen. So there is ample room for growth for all the band players. Reply
Five Reasons RIMM Will Continue to Fall [view article]
ghjg ReplyBellehumeur
Five Reasons RIMM Will Continue to Fall [view article]
You have some valid points in your 5-point argument, but some other ones that are way off base.I agree that there will be some margin compression. However, your argument doesn't factor in that RIM doesn't play in the low-end commodity handsets that are selling large in Emerging markets. This is the cause of much of Nokia's lower margins. RIM also has a significant high margin revenue from the Carriers as a "Royalty" for using their BES service. This is huge margin.....
As well, I have heard this open Architecture argument for years. I used to be a Carrier Sales Manager, and we were concerned years ago that RIM was taking up too much of this market, almost a Monopoly status. We tried to push other technologies (Visto, Good, Microsoft Exchange, etc). While they all had some functionality, none of them could match the slickness, security and reliability of the BES/BlackBerry combination. Even when companies tried to use the RIM software on their devices, such as Palm and CE, it never proved to be as reliable.
I am long on RIM, having just bought some this week. Are you sure that you are not Short? Reply
Five Reasons RIMM Will Continue to Fall [view article]
i definitely hold this analyst credible, a "former" rbc vp, gee i wonder why from some college i never even heard of, who cant even add. u better do your homework next time you decide to post... this just shows how easy it is for any fool to write an article ReplyFive Reasons RIMM Will Continue to Fall [view article]
Lol......I agree......Where were you when the stock was at $140........But I do agree that RIM has quite a bit more to fall. But I have no idea what he is talking about!! Replyt
Five Reasons RIMM Will Continue to Fall [view article]
The only difference is RIMM makes Service money monthly!With large margins to boot.it's not like Nokia, LG,Samsung,and Motorola that just make a profit only once when they sell the handset to the operator.RIMM sells the device once, then runs the Blackberry service portionand garners huge margins that way...
-Your math is wrong.
-I hold no shares, but they are unlike any other handset manufacturer. Reply
t
Five Reasons RIMM Will Continue to Fall [view article]
The only difference is RIMM makes Service money monthly!With large margins to boot.
it's not like Nokia, LG,Samsung,and Motorola that just make
a profit only once when they sell the handset to the operator.
RIMM sells the device once, then runs the Blackberry service portion
and garners huge margins that way...
-Your math is wrong.
-I hold no shares, but they are unlike any other handset manufacturer. Reply
Five Reasons RIMM Will Continue to Fall [view article]
Where were you when RIMM was trading in the 140's? It's easy to jump on the bandwagon when its unidirectional. Articles like this are good contrarian tools. ReplyFive Reasons RIMM Will Continue to Fall [view article]
Questions:1. Why is Price to Sales the only metric you care about? Do earnings matter?
2. When you calculate price to sales, why do you ONLY include handsets and not SERVICE REVENUE?
Answers:
1. YES
2. Because your total lack of understanding limits you. So you say that RIM (not RIMM, that's the ticker, not the name of the company) could sell 100 million handsets in a few years. If that was the case, assuming the usual 50/50 split between upgrades and new subs, then 50 million new subs would be added. At ARPU of just half current ARPU of $7 (from service fees, Matt) or $3.5 per month, per sub, equals $2.1B annual revenue from JUST service fees at 80% margins, 30% taxes, that alone equals over $1 billion after tax profits, which you could easily place a 20 multiple on. And the user base would have grown dramatically if they got to those number. So you would have to add device sales PLUS service fees for existing customers and OBVIOUSLY the value of this enterprise will be far greater than your ridiculously inane target value. Reply
Five Reasons RIMM Will Continue to Fall [view article]
I re-read this article and it strikes me how DUMB this it is. Uses faulty valuation metrics. Never looks at earnings. Doesn't once mention how to value the service revenue. Doesn't look at carrier incentives. Pretty much doesn't add any real value to this site. Thanks for a nothing article Matt. You will be proven wrong in the next 12 months. ReplyFive Reasons RIMM Will Continue to Fall [view article]
Any iPhone user will defend it to death. There is no reason involved. So of course iPhone will be in every single person's pocket in the world and no other mobile phone will ever be sold again. Why try to reason an iPhonatic? It's a fool's errand. Anyone with half a brain knows the end market for these devices is huge and growing so anyone who brings value to the table will sell tons of devices. Reply