In the recent events past week where GoldmanSachs raises Research In Motion Ltd.(RIM) to buy the company share price advanced $ percent to $11.54 in New York.
Canaccord Genuity analyst T.Michael Walkley does not seem to be confident about BlackBerry 10 which is due to launch on January 30th 2013. Downgrading RIM to “sell,” Mr.Walkley expresses that “fundamentals: do not support the stock’s recent share price appreciation. Mr.Walkley thoughts are quite debatable he also forgets stock analyzing has always been considered as art rather than science and this strongly applies to technology where a good product can always be a game changer.
While the negative rallies goes on there are analyst sharing GoldmanSachs optimism. RIM’s current BlackBerry lineup continues to lose market share to Apple Inc. (AAPL)’s iOS and devices that run Google Inc. (GOOG)’s Android software, the new phones may change that, said Simona Jankowski, a Goldman analyst, according to Bloomberg Businessweek.
Tavis McCourt of Raymond James states RIM only needs to sell 18 million BB10 devices in FY14 to break even in the market. While this is true, according to the size of BlackBerry user base and their loyalty the company is likely to pull at least 25 million sale in FY14. Although subscriber losses in, RIM still has roughly 35 million subscribers in Developed-country alone. And about 80 million worldwide and who are enthusiastic about upgrading to BlackBerry 10. The device could potentially increase RIMM’s customer base by 10% to 25% and for Research and Motion growing consumer rate should not be hard to handle. Currently, BlackBerry smartphones run on 565 wireless networks in more than 175 countries. While iPhone runs only on 227 carriers around the world. With the above statistics RIM should not have any problem to break even.
Eric Jackson of Ironfire Capital LLC, who previously predicted declines in RIMM share value, recently bought those very same RIM shares, expecting a rise from loyal customers upgrading to the new os- source seeking alpha
Reviews by the wireless carriers have been quite positive on BlackBerry 10 operating system.”We think the experience is so unique, it doesn’t really matter that it comes in the first quarter,” Kristian Tear said.This support by the wireless carriers towards BlackBerry 10 has even more boosted RIM survival in the market.
From my perspective, the stock now seems to be an ideal buy. Shares are still quite cheap, and appear to be slowly but consistently heading skyward.