Shorting NowI may be going against the grain, but I think RIM is going to pull back. For sure, its an outstanding company. But there is a price for everything. If RIM were $200 would you buy it? I think stock should be $80. That would still be up 60% Y/Y. Annual EPS around $2.00. That's 40X EPS.
Company should experience some slow-down in profit growth. Sales up 27%, but EPS doubled because of margin improvement. Margins can only go up so much (i.e., 100% of sales to be fecitious).
RIM intorudced a lot of new generation products. Everybody upgraded. Over next 12 months less new products where existing users just have to have it. As well, slowdown in fiance sector means lowere than what would have been usage of Blackberry's.
Sure, RIM will still grow at fast rate. Its all relative. Again, would you buy it at $200? At $150? For me $110 too high. Believe number should be $80 today. Technology companies are not immune to potential slowdown in economy.