Research In Motion (RIMM) has been hit pretty hard over the past few months compared to its competitors and the overall market. For those who do not know, RIMM is mainly a phone manufacturing company, with its major competitors being Apple (AAPL), Google (GOOG), and Palm (now owned by Hewlett-Packard) (HPQ). RIMM has been having some problems in Asia lately, accounting for its recent drop in share price. However, might this be a time to buy on weakness?
RIMM is a zero debt company, with total assets increasing steadily quarter by quarter. You cannot say that RIMM is not a growing company, as their numbers clearly show they are. Below are RIMM's current quarterly asset balance sheet numbers. The company has zero debt, which is definitely not a bad thing.
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You can also see that RIMM's revenue, net income, and profit margins are increasing quarter over quarter. Now, I am an investor/trader who likes to keep things simple, and by just looking at these numbers, I see that RIMM is a healthy, growing company that is currently having some product issues - something every company goes through. I also believe that Apple's iPhone will at some point lose its hype (as all products do, at some point), which would cut back on RIMM competitors. Here are RIMM's balance sheets:
The bottom line is that Research In Motion could potentially be a good buy for the long run. The fundamental and competitor analysis both point to a potentially higher share price. Once again, keeping it simple is sometimes best, and right now the "simple" numbers are telling me to buy.
Disclosure: No positions yet