The top 100 stock
market authors
selected for publication
market authors
selected for publication
Brad Ferris » Comments » Single Comment
Comments by Ticker
43 comments
Rating: 12
(16 
-
4 
)
-
4 )
-
The Seeking Alpha 100
See all
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most active
Instabloggers.-
1
TraderMark
-
2
Don Dion
-
3
Cliff Wachtel
-
4
Mike Havrilla
-
5
James Quinn
Top Instabloggers » -
1
-
Top StockTalkers
TopSee all
StockTalkers.
Top StockTalkers »
-
alphatech,
Sep 29 08:33 am
|Rating:
0
0
All Comments by Brad Ferris »Keeping RIM in Sight for 2009 [View article]
I'm applying a 2009 multiple that brings RIM closer to the valuation NOK held a few years ago. NOK is a much more global company and RIM currently is entering markets where NOK has dominant market share. If they make significant inroads there then I would expect them to trade on par with Nokia's 2002-2004 P/E range.
I have no doubt that RIM can continue to make significant cashflow, but its well documented that when any company enters the consumer market after dealing with a professional niche that price needs to come down in order to reach scale. RIM is also commiting a significant amount of their cashflow to R&D and I don't expect this to stop. After further analysis over the weekend I have a target price I'm comfortable with in mind.
If you believe that RIM offers considerable value at this time than I encourage you to buy. As a value investor I look for a higher MoS, so I'll hold off for now.