RIM (RIMM) Rips Following Positive Blog Sentiment
Tweet
Share
E-mail
Research In Motion (Nasdaq: RIMM) saw a spike to the upside earlier following the posting of a bullish blog article by SeekingAlpha.
The post lauded RIMs commitment to its PlayBook tablet, saying the device will be a game changer for RIM. The next iteration -- PlayBook 2.0 -- is slated to hit stores toward the end of February, and the blogger thinks the revamp will change RIMs reputation.
Factors like a change in sentiment were ruled-out with the appointment for a new CEO and M&A now all but off the table. The blogger believes investors will now be looking at RIM more from value perspective rather than speculative position.
Reevaluation of RIM's P/E will also happen. Currently, the stock is going for about 5.8 times next year's earnings expectations of $2.93, richer when compared with its current valuation of about 4.1 times. Applying something like 10 times multiple to forward EPS expectations yields a share price of $29.30, which is about 73 percent better than it's current level.
RIM is up about 1.2 percent Monday.
The post lauded RIMs commitment to its PlayBook tablet, saying the device will be a game changer for RIM. The next iteration -- PlayBook 2.0 -- is slated to hit stores toward the end of February, and the blogger thinks the revamp will change RIMs reputation.
Factors like a change in sentiment were ruled-out with the appointment for a new CEO and M&A now all but off the table. The blogger believes investors will now be looking at RIM more from value perspective rather than speculative position.
Reevaluation of RIM's P/E will also happen. Currently, the stock is going for about 5.8 times next year's earnings expectations of $2.93, richer when compared with its current valuation of about 4.1 times. Applying something like 10 times multiple to forward EPS expectations yields a share price of $29.30, which is about 73 percent better than it's current level.
RIM is up about 1.2 percent Monday.
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
PlayBook, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
