.crazylegs..

Despite Drop, RIMM's Valuation Still Too High

WOW! This article misses on many fronts:
1. High expectations: 14% sequential growth is HUGE (that would mean 68% annual growth if that continued each quarter for a year). It's priced at a discount to its growth and the opportunity ahead of them is gigantic.
2. Food companies? Yeah, that's a fair comparison.
3. Transparency? How about the 6K that I read. You know, the one they file with the SEC after each quarter.
4. Pitfalls? Finance represents about 13% of the company's users and that is falling each quarter. Not a large impact. And if you think any bank will adopt the activesync protocol and accept incoming pings from devices (which requires opening their firewalls), you aren't paying attention. Patent fights are part of the business and always present a risk to any company.

I can't say whether the stock might be down "20%" in the near future, but you simply can't ignore the fundamental opportunity ahead as mobile phone users adopt "smarter", connected platform devices. Combine that with RIM's push to have carriers offer low cost BB plans, and you'll see how the economic principle of elasticity of demand for data services propels the company's revenues and earnings significantly higher over the coming years.