Martim Macedo's  Instablog

Martim Macedo
Send Message
I enjoy doing research and analyzing companies, hoping to find good investment opportunities. I'm Portuguese, a big fan of Warren Buffet and looking to share and discuss my ideas with other investors.
  • Another Opinion On RIMM 3 comments
    Mar 21, 2012 9:40 PM | about stocks: BBRY

    I know that probably you have heard and read a lot of opinions about Research in Motion over the last months but why not just one more?

    Well, everybody wants to know how to get rich during the night and, if you're one of those persons, you may stop reading right here.
    I don't know if buying RIMM will make you rich or poor but I like to check the facts about a company and try to take advantage of short term market movements that seem exaggerated.

    The present value of a company is what it has right now plus what it can earn in the future. Checking the latest numbers, we have a book value per share of $19,45, more or less $10B of total equity, and almost zero long term liabilities.
    Also, even with a bad current quarter, this year's result will be the second best ever, having already earned $2,64 per share with one quarter left.
    So, I think its fair to say that RIMM has a very healthy balance sheet and is still making money.

    But, as I write this article, the current share price is around $13 so there must be something I'm missing. Is it the product? Will BlackBerry disappear in the near future? Are the numbers false? Are there no benefits of owning a Blackberry phone?

    Well, I'm no specialist but I agree that there must come a new range of phones (BlackBerry 10?) quickly, accompanied by a strong marketing plan, but until then, the current phones are still selling well and are still making the company profitable. Also, I understand that there's no safest way of communicating than with a BlackBerry so there's a big competitive advantage for RIMM.

    So is this a good investment opportunity?
    The company is profitable, there are no hidden risks on its balance sheet, there are new products coming, they have very good technology, global presence...

    It's just that currently the company is out of fashion.
    Just a few years ago everybody felt that they needed to have a BlackBerry, now everybody feels that they need to have an iphone.
    Meanwhile, stock prices get overoptimistic and pessimistic.
    We just have to try and take advantage of them, checking the numbers, having good sense and hoping we are right.

    Good luck!

    Disclosure: I am long RIMM.

    Stocks: BBRY
Back To Martim Macedo's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (3)
Track new comments
  • Davidgs
    , contributor
    Comment (1) | Send Message
    I'm with you. Current price movement is just due to retrospective geniuses who decide to downgrade the a stock who's issues are already priced in.
    8 Mar 2012, 11:20 AM Reply Like
  • Outsider22
    , contributor
    Comments (1170) | Send Message
    "So, I think its fair to say that RIMM has a very healthy balance sheet and is still making money."


    There is no growth....No growth is the kiss of death in public companies.


    They will never have growth either since they missed the boat and did not create a smart phone. No one wants properietary tech stuff and no one is going to write apps for the BlackBerry OS..Its that simple.


    Everyone that owns a Blackberry then an Iphone knows this all to well. I have > 120 apps on my Iphone now. I couldn't get 10 on my BlackBerry, it sucked. The crap ones it had, SUCKED in terms of operation.....its just a bad design!!


    Smart phone has LITTLE TO DO with email and text alone. If you think that is all a phone should do then you have no idea about the business of smart phones.


    Conclusion, they didnt create a smart phone that can grow and sell long term.


    If you are long then you are either too close personally to the company or you simply do not understand technology well enough to realize how bad RIM's position is.


    Do not go over the bridge with the rest of the locals in Ontario, Canada. Just ask all of them what happened to Nortel ;)
    28 Mar 2012, 02:27 PM Reply Like
  • BadCop_NoDonuts
    , contributor
    Comments (535) | Send Message
    yep. I'm a BB user, and may continue with it, but I sure as hell don't use the browser very much. I'm satisfied (barely) because I like the physical keyboard, GoogleMaps w/GPS, the calendar, and it does email pretty good. RIMM missed the boat in a big way and their growth is going to turn negative. Get short while you can. Next stop: $9 or less.
    28 Mar 2012, 03:06 PM Reply Like
Full index of posts »
Latest Followers


  • What about a $BBRY and $CSCO marriage? Cisco certaintly has the means to do it.
    Aug 13, 2015
  • It's ridiculous the difference in market multiples between $BBRY and $MOBL.
    Jul 30, 2015
  • $PBR Interesting at current price. Too much noise but operationally everything normal. Even so, difficult to guess the low.
    Nov 19, 2014
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.