Research In Motion: It's Time To Start Buying

| About: BlackBerry Ltd. (BB)
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I must say that I´m excited with two things that make an investment a good one. Of course it's not guaranteed but when you have new products coming out (that look great) and a healthy balance sheet to support the transition, a good investment opportunity may arise.

I don't know if this makes any sense to you but imagine that you are investing in a start-up who already has a valuable brand, assets, client base, no debt and all it's financing secured, for a 30% discount ( $13.5 market price compared to book value of $19.27 per share).

2012 2011 2010 2009
Revenue millions $18,435 $19,907 $14,953 $11,065
Net Income millions $1,164 $3,411 $2,457 $1,892
Total assets millions $13,731 $12,875 $10,205 $8,101
Total liabilities millions $3,631 $3,937 $2,602 $2,227
Total Equity millions $10,100 $8,938 $7,603 $5874
Shares Outstanding millions 524 521 557 566

Let's start by checking the numbers. In an environment where I even read crazy comparisons between RIMM (RIMM) and Kodak, the company has made a profit in every quarter (in the last excluding extraordinary costs), for a net income of $1,164 million in the last year. Also, bear in mind that the total subscribers continue to increase, having totalized 77 million at the end of last quarter.

So, what would you get if you invest in the company at more or less the current $7 billion market cap:

- Total assets: $13.731 billion, of which $1.774 billion in cash and short term investments

- Long-term debt: $0

- Total equity: $10.100 billion

It looks like a good deal if the company manages to remain profitable, even if it doesn't return to previous profitability levels. Even so, the success of the investment will ultimately depend on the success of Blackberry 10.

While it's still early to predict anything regarding to the acceptance of the new BB10 platform, the little pieces that have been shown look pretty good. I think that the enterprise market will appreciate the "flow" concept that is the base of the platform very much as it keeps all apps running in real-time. Also, it looks that they are making a very big effort to get the app developers to be get onboard and happy, which is another important piece to the platform success.

I guess that ultimately, everyone of us should take a look at what has been coming out regarding the new BlackBerry 10 and decide if they want to invest in that product. We never know if this is the next Kodak or if it's Apple (NASDAQ:AAPL) 10 years ago (probably it's neither). My opinion is that at current prices, it's a pretty good opportunity to start investing in this company and wait until the market mood changes.

Disclosure: I am long RIMM.