RIM (RIMM) Rips Following Positive Blog Sentiment
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.
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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.
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