RIMM is up more than $10 the past two days. (more than 7%) 

[quote author=“incorrigible”][quote author=“jwarren2001”]As I pointed out earlier in the intraday thread (edited for closing numbers):

Another day with more of the same…

While the broader markets are all down, RIMM gets two bullish notes from analysts this morning, so what does their stock do? Why, it closes up 1.6% on the positive outlook, of course. Markets be damned.

AAPL gets two more bullish notes from analysts to add to the three they got yesterday, so what does their stock do? Why, it closes down by a greater percentage (-1.5%) than the broader markets, of course. Upgrades be damned.

Incomprehensible. :x

Do keep in mind that AAPL was up about $10 over the last two days.

So was RIMM and, of course, as a percentage even higher. The games continue…

AS someone pointed out the other day, there are fewer shares of RIMM available to buy?supply and demand rules. There are a lot of shares of AAPL out there, and perhaps more fickle stockholders.

But it seems that there is a good chance RIMM can catch up on AAPL’s share price. Does it deserve it? No. But the market will price it with its own slanted criteria.

Curiously, even though RIMM has appreciated significantly in recent days as well, Cramer has yet to yell on camera “sell 75% of your holdings…”

He uttered that again today about AAPL… yet nary a peep about RIMM… this definitely appears to be a long term pattern of FUD, not just a matter of the number of shares outstanding…

[quote author=“MacKauai”]Curiously, even though RIMM has appreciated significantly in recent days as well, Cramer has yet to yell on camera “sell 75% of your holdings…”

He uttered that again today about AAPL… yet nary a peep about RIMM… this definitely appears to be a long term pattern of FUD, not just a matter of the number of shares outstanding…

I’m glad to see the RIMM thread, as I am very interested in defense of RIMM PE vs Apple’s. Can RIMM’s growth rates stay where they are for much longer? I somewhat doubt they can and we’ll eventually see some PE contraction as that occurs. The top dog will always have trouble (eventually) keeping initial growth rates as they will have to top out. Apple, on the other hand is starting with very small market share for Macs and iPhone with incredible room for growth. We’ll see growth in earnings and likely some PE expansion as iPhone permeates the consumer market.

I’m must admit that I believe iPhone growth in the enterprise will be very slow.  CIOs and Mr. IT will not be excited by the new kid and RIMM will start adding features like touch screens and a full fledged browser shortly to defend their turf. iPhone will start making slow inroads not because the enterprise buys them, but because employees buy them and then bring them into the business. This will slowly start to build support internally for iphone and eventually we’ll see significant change. However, don’t expect to see this move happen very quickly, it will be a long drawn out change.

On the other hand, I expect consumer growth for iPhone to blow everyone’s numbers off the map. With this we’ll unfortunately see negative growth for iPod as a side-effect. However, the halo effect will continue and Mac sales growth will be very very strong. The overall news is very good, but let’s not set expectations too high too quickly in certain areas such is iPhone in the enterprise.

[quote author=“MacKauai”]Curiously, even though RIMM has appreciated significantly in recent days as well, Cramer has yet to yell on camera “sell 75% of your holdings…”

He uttered that again today about AAPL… yet nary a peep about RIMM… this definitely appears to be a long term pattern of FUD, not just a matter of the number of shares outstanding…

RIMM is reporting in a week if I am not mistaken. Traditionally, there is a nice run up leading to the earnings announcement.

Cranium,

Welcome and great post.  Solid analysis.

cranium, welcome to the AFB!

Cranium,

Welcome, and due note taken of your location.

I mostly agree with your comments. However, iPhone is really part of the iPod product line. The useful numbers to measure Apple’s success are: personal music/audio devices (including iPhone); OSX platform device sales (including iPod touch, iPhone and Mac), and personal computer sales (anything that can run MS Windows). Also, iPhone worldwide rollout may offset shrinkage in US iPod sales with a growth in the smaller cheaper iPods as supplementary devices for newly installed copies of iTunes, often for use by other family members.

And in the enterprise, I fully agree that switching existing BB-using staff to iPhone is going to be slow. But iPhone is going to grow like wildfire in new applications using GPS, camera, web and VPN. Including transport, construction, field maintenance and sales. Deployment of new projects on iPhone is just going to be far cheaper. iPhone owning staff are going to be doing it for themselves before IT even write a spec for BB.

June 25 AMC

June 25 AMC

It does appear RIM is going to keep riding high right up to earnings.  That’s some power since they’re disconnecting from the general market decline.  I have my 100 shares, so I can’t complain.  I don’t understand why, but as long as it’s paying off, I’ll be grateful to reap the benefits.

From MarketWatch this evening. Story titled, Can Research in Motion keep up the pace?:

RIMM EARNINGS OUTLOOK

[quote author=“kiwitrader”]From MarketWatch this evening. Story titled, Can Research in Motion keep up the pace?:

RIMM EARNINGS OUTLOOK

Thanks for the link, Kiwi.  I enjoyed this section, particularly…

However, some have concern that Wall Street may be too optimistic on RIM’s performance. James Faucette of Pacific Crest said his research has suggested some potential weakness in Europe as well as at Sprint in the domestic market.
“We have expressed concern over recent weeks that the Street may not have taken into account sufficient summer seasonality when putting together August-quarter estimates for net subscriber additions and device shipments,” Faucette wrote in a June 13 report. “Early feedback on sell-through trends for June appears to be consistent with those concerns.”

awwwwwww…..too bad  

My belief is that RIMM is going to prove us wrong one more time (this time), and thenceforth, the P/E has to go down.