Verizon Communications Inc. (VZ)

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  • commenter
    User 235876
    Oct 04 11:08 AM
    Five Reasons RIMM Will Continue to Fall [view article]
    ghjg Reply
  • commenter
    Larry
    Bellehumeur
    Oct 04 10:54 AM
    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
  • commenter
    lcpcp
    Oct 04 08:51 AM
    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 Reply
  • commenter
    Pfloyd234
    Oct 03 11:35 PM
    Five 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!! Reply
  • commenter
    theduffrepor
    t
    Oct 03 10:27 PM
    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
  • commenter
    theduffrepor
    t
    Oct 03 10:27 PM
    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
  • commenter
    spark
    Oct 03 08:02 PM
    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. Reply
  • commenter
    .crazylegs..
    Oct 03 01:59 PM
    Five 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
  • commenter
    .crazylegs..
    Oct 03 01:44 PM
    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. Reply
  • commenter
    .crazylegs..
    Oct 03 01:39 PM
    Five 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
  • commenter
    MobileAdmin
    Oct 03 12:30 PM
    Five Reasons RIMM Will Continue to Fall [view article]
    The same logic can be applied to why doesn't enterprise allow users to bring their own laptop/pc. There is always something "better". iPhone in its current state, no matter how cool the GUI and internet is cannot compete in the security / management that enterprise need. Every year some new slick device comes out that is email capable - that is not all that is required for mobility.

    What we are seeing is the growing use of mobile devices and the cross over with personal usage and business usage. It will take some time for companies to understand what they need, how to manage it and how to apply current compliance / usage rules against WHATEVER device they deploy. At the moment Blackberry has the lowest TCO and tools to do these things via BES.

    Apple has itunes and the Appstore.     Reply
  • commenter
    Brewer
    Oct 03 11:59 AM
    Five Reasons RIMM Will Continue to Fall [view article]
    If the so-called 'business users' need more than email, they will need more than RIM can produce. How much tech do you really need to sell things? Not much, apparently.

    I find it easier to type on the iPhone than the BB, and the iPhone fits in my pocket much better, and is about one million times more useful.     Reply
  • commenter
    Konst
    Oct 03 09:50 AM
    My Website
    Five Reasons RIMM Will Continue to Fall [view article]
    That's what happens when you play musical chairs with stocks, expecting bigger fools to pay more than you did. Rimm was obviously overvalued. And when the "momentum investors" pull out, they all pull out, don't they? Wasn't Jim Cramer advocating this stock a few days ago? And he also said that it's good to buy overvalued companies, well here you go. Reply
  • commenter
    randomReader
    Oct 03 09:30 AM
    Five Reasons RIMM Will Continue to Fall [view article]
    Sounds like a lot of guess work to me. You say enterprises will, going forward replace their RIMM email architecture with ‘open’ e-mail systems. This is a pricey venture for any corporation, and I think that is where your argument is flawed. Also, you can definitely set up say, A Microsoft Exchange server and still get your e-mail pushed to you. Many Corporations, including my previous employer, take this route as it leaves options open. Even though they leave the door open they still continue to buy RIMM products, why?
    Apple, Motorola, and other Smart phone manufactures have attempted to compete with RIMM’s line of product and have on every occasion failed epically. Starting with the iPhone, not many business people would be dumb enough to even consider buying this for business use. The on screen keyboard is annoying, and not easy to use. The fact that it is all touch screen poses another user interface issue, which would be navigation. Yes the interface is easy, however there aren’t any options, you must use the touch screen. Another down fall for many people is it is made by Apple… And realistically it simply doesn’t do what a Black Berry does. Onto Motorola, as if the Windows Mobile platform didn’t suck enough, you have Motorola who doesn’t want you to lay your hands on a full version of windows mobile. So they hack it all up to crap, leaving you with nothing good, and nothing very functional.

    The only real opponent I can see of RIMM’s for business phones is HTC, but HTC also has a few problems. The HTC Touch was a failure, its screen often failed, it would freeze a lot, and does not have push e-mail. The HTC P4000 (I have this pone  ) is an ok phone, but that is for personal use. Once again no push e-mails system like the Black Berry’s. Once again running windows mobile, which has its pros and cons, the con being that my P4000 seems to freeze up on me like it’s a new religion.

    What I’m getting to is RIMM has competitors, but are they even in the same race? When it comes to Business solutions, I would think that no other company can offer a product even half as good as RIMM’s. The operating system is stable, the phones are nice and even becoming stylish, true push e-mail system, use java so software is widely available, and EVERYONE has one. I work in sales, in a retail environment and young people are constantly looking at Black Berry’s. I think RIMMS stock is just showing that the economy is slowing down.
    Reply
  • commenter
    SouthBeached
    Genius
    Oct 03 04:39 AM
    Five Reasons RIMM Will Continue to Fall [view article]
    good article. RIMM's a decent outfit, but the stock is overvalued. has been for a long time. I hope most of you got out at 140 as I did, then went short to monetize the flip side! anyone still holding on, I'd either liquidate now, or if you have the stomach, wait for the next suckers bounce and then get out. all the Canadian bank analysts were convinced the stock would go to 200, but they've been, and will be, proved both wrong and biased in their analysis. Reply
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