RIMM Equity Research
(Senior Baboon, 217
Points)
on 1/1/13 at 12:03am
Hey guys, I decided to create an equity research and post it online for you guys to judge. Please give your honest critique.
A little about me is that I am still waiting to get into undergrad, therefore I am very sure this report is like toilet paper. But still :))
THANKS!
Edit: Removed the report. Will be revising it!
One thing that I would notice
One thing that I would notice is that my research have little hard data like earnings projections. But that is partly because of the fact that I am not even an undergrad yet, and also because this I believe this is a rather qualitative situation. Thoughts?
BUMP!
BUMP!
Thought I would post before
Thought I would post before someone tries to tear you apart. You deserve enormous credit for taking the time to put this together.
One thing I would recommend is reading relevant professional ER reports and consider the themes and drivers they talk about.
mrktmaker: Thought I would
Thought I would post before someone tries to tear you apart. You deserve enormous credit for taking the time to put this together.
One thing I would recommend is reading relevant professional ER reports and consider the themes and drivers they talk about.
Alright! Just downloaded a bunch of reports from my Optionsxpress account for references. But I do not get what do you mean by themes? I get the drivers, which is BB10. But what do you mean by themes?
And feel free to rip me apart! That is how people learn best right.
Sent you some stuff - should
Sent you some stuff - should help out.
7xEBITDA: Sent you some stuff
Sent you some stuff - should help out.
Something that is holding me back is that I lack valuation skills and therefore my selection are usually very discretionary. Are there any places that one can pick up this skill? I have lots of time to burn.
Thanks!
Jason, I like that you
Jason,
I like that you are trying and are still in high school. It shows ambition. A few things. Your report needs to be longer. I honestly see very little value add in it. You need to get into detail about RIM's future and mainly its valuation. Just like when you look at real estate, the important keys are location, location, location. With ER, its all about valuation. There really isn't any particular place that will show you valuation skills and let me explain why. Valuation is part art and part science. I was a summer analyst at a long only hedge fund focused on value opportunities. The one thing I learned was that even if the company is a complete pile of garbage, the stock could still be attractive and visa versa. You have break down the balance sheet. Look at RIM's patents. Read the 10-K, listen to earnings calls. For a stock, you cannot really just slap a multiple on it and say what it should be worth.
I did analyzed RIM awhile ago and one of the concerns for me was that the company is completely relying on BB10 to turn itself around. The earnings calls and SEC filings show that their is a huge risk for the company. You need to talk about this and address it well. As an analyst, you are trying to convince investors to buy/sell/hold, so you need to justify most arguments that are made against your thesis. For example, if someone says to you RIM is losing significant subscribers, you could respond by saying the company is still growing more than 7% in international markets. The U.S. smartphone market is too saturated, but the international markets have plenty of room for growth. This is just an example. PM me if you have questions.
P.S. - Apple trying to takeover RIM is nowhere near a reasonable assumption. There are a hundred things I can think of that are wrong with this situation. It doesn't matter if a company has enough cash for an acquisition, what matters is if the acquirer will benefit and what synergies will hold.
Thanks for all the help guys!
Thanks for all the help guys! Continue with the critique!
I'm working on a RIMM report
I'm working on a RIMM report sample as well, except that I have the forecast and valuations done. Nice try thou!
And this, pay attentions to
And this, pay attentions to BB 10 debut, might be another great catalyst. And despite the fact that the revenue growth is declining due to shrinking market share, its constant 0 debt-to-equity ratio continues to indicate the company's healthy financial status and its ability to payoff obligations and liabilities with internal generated cash and proceeds from equity. That's the second catalyst. The third catalyst will be the results of the catalysts mentioned above, less liabilities implies that RIM can allocate more income from the sale of BB 10 into their future R&D expense, and hence might facilitate the development of better products that are comparable to Apple.
That's just my opinion. Monkey fellows please feel free to correct me too :)
And I see that most bb are recommending a sell position. Why is that thou?
tonydaboiii: And this, pay
And this, pay attentions to BB 10 debut, might be another great catalyst. And despite the fact that the revenue growth is declining due to shrinking market share, its constant 0 debt-to-equity ratio continues to indicate the company's healthy financial status and its ability to payoff obligations and liabilities with internal generated cash and proceeds from equity. That's the second catalyst. The third catalyst will be the results of the catalysts mentioned above, less liabilities implies that RIM can allocate more income from the sale of BB 10 into their future R&D expense, and hence might facilitate the development of better products that are comparable to Apple.
That's just my opinion. Monkey fellows please feel free to correct me too :)
And I see that most bb are recommending a sell position. Why is that thou?
Would be great if you could send me the report to have a look at after you are done! :)
And also to your last point, if everyone that wants to be out of this stock is already out, there is only one way it will go...at least that is what i think
And I would like to hear your
And I would like to hear your rationale of why BB 10 will be more of a statement of fashion. Personally for technological products I would recommend the report to focus on the gadget's functionality. For BB 10, instead of viewing it as a ground-breaking and well differentiated product, I think it is just another substitute for other similar gadgets like samsung galaxy note and iphone. So RIM's intention is more like "sharing the pie" rather than "baking a whole new one." Do you understand my point? If this is true, I predict that RIM's revenue growth won't last for long. And don't forget that, Apple has a norm to release a new product annually, give that an upgraded version of the existing iphone product or whatever useless crap. For this reason, RIM has to keep up with their product development and release in order to bump up the price. And this is hard, because in the industry it is Apple Inc. who sets the pace as well as the norm, which might not be optimum to other companies.
Not trynna be a jerk, but
Not trynna be a jerk, but there is little value in your report. It needs to be more in depth: corporate governance how new leadership will affect the company going into the future, comps, valuation, rational, financial analysis, industry break down, macro environment, overview of firm history - how RIMM got to where it is, consumer spending and sentiment, number of BB users in relation to Androind and Iphone users, major markets etc. Also if you are in highschool, chill out you'll have loads of time to pick these things up in college. Btw I would rate RIMM as a hold/underperform, but definitely not a strong buy.
JasonLoh: tonydaboiii: And
And this, pay attentions to BB 10 debut, might be another great catalyst. And despite the fact that the revenue growth is declining due to shrinking market share, its constant 0 debt-to-equity ratio continues to indicate the company's healthy financial status and its ability to payoff obligations and liabilities with internal generated cash and proceeds from equity. That's the second catalyst. The third catalyst will be the results of the catalysts mentioned above, less liabilities implies that RIM can allocate more income from the sale of BB 10 into their future R&D expense, and hence might facilitate the development of better products that are comparable to Apple.
That's just my opinion. Monkey fellows please feel free to correct me too :)
And I see that most bb are recommending a sell position. Why is that thou?
Would be great if you could send me the report to have a look at after you are done! :)
And also to your last point, if everyone that wants to be out of this stock is already out, there is only one way it will go...at least that is what i think
I wouldn't focus hard on the last point, because the point of the report is to demonstrate your passion in the ER. Therefore they wouldn't care if your opinion is obviously wrong, you just have to spin it into a nice story.
And btw for my last point, I want to use facebook inc. as an example. If you look up yahoo! finance, you'll find that since the IPO of facebook stock, it has been declining from $38 to now ~$25.81 (about 34% drop). And despite this fact, facebook's top 3 underwriters (MS, JPM, GS) are still issuing reports with a constant buy recommendation. What does that suggest?
One more fun fact, their in-house mutual funds are shorting some of the facebook holdings.
Peter_27: Not trynna be a
Not trynna be a jerk, but there is little value in your report. It needs to be more in depth: corporate governance how new leadership will affect the company going into the future, comps, valuation, rational, financial analysis, industry break down, macro environment, overview of firm history - how RIMM got to where it is, consumer spending and sentiment, number of BB users in relation to Androind and Iphone users, major markets etc. Also if you are in highschool, chill out you'll have loads of time to pick these things up in college. Btw I would rate RIMM as a hold/underperform, but definitely not a strong buy.
Do you mind telling me why is it underperform?
tonydaboiii: Peter_27: Not
Peter_27: tonydaboiii: Pe
tonydaboiii: Peter_27: to
Feel free to contact me for a