Good thing I waited for the earnings release before placing a buy order for RIMM. The stock plunged 10% after the earnings, as traders were disappointed that revenues came in at the lower end. Despite attaining higher margins, traders are looking at the volume of sales rather than the profit. This looks like a golden opportunity to buy RIMM at an extremely low price.
The 2 new products coming out really soon could be that 9800 BOLD which features iphone look alike touch-screen interface coupled with the award winning blackberry keyboard.
Closing the old GAP
RIMM could finally close the gap that was created last year. Look at $49 for a strong buy of RIMM shares.
Share Buyback
RIMM launches another share buyback program, signalling to the market that the stock price is cheap.
Impending volume increase in sales
Smartphone sales would most probably increase in the next 2 years, Blackberry should be able to keep its market share especially in the corporate sector. Furthermore, the new Blackberry OS6 is going to be a plus point.
Recommendation
Buy RIMM at $49. Max buy price is $55.
Disclosure: No position yet.
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