Goldman cuts RIMM to SELL due to the ‘loss of differentation’ into applications from email. Fears that competitors Apple and Google will overtake RIMM in US and possibly internationally were the primary reasons put on RIMM cut to SELL!
Finally brokers are starting to issue SELL ratings on big name stocks.
Too bad they are wrong. The focus should be on the annihilation of PALM because RIMM still has space to manuver. After all RIMM is #1 in email, the must have application and the world market for hand held devices is growing internationally at a pace that will easily support 3 big names.
I sold all but 100 shares at $70 Feb 28th but hung on to 100 shares. That booked me a 72.59% Adjusted Gain.
Sure RIMM missed estimates, but is the RIMM selling about to get overdone? If it does, I’ll be back. Nibbling 1/4 at $60. If I can pickup RIMM before the next UW/European economic expansion period, I might just get another big return over the next 18 months or so.
Besides, Credit Suisse and the Street have Outperform, Buy ratings respectively.
Raising estimates, reiterate Outperform. We raise our FY11/FY12 EPS estimates by 5%/6% to $5.70/$6.35 (from $5.45/$6.00), given higher volumes. With continued strong consensus EPS momentum and robust earnings growth, we retain our Outperform rating (CS focus list stock) and increase our TP to $100 (from $95), which represents 16x our FY12 EPS. Source: Credit Suisse
Yes, sell now, but buy later.