A Big Upgrade for Research In Motion
By
Dave Mock
April 24, 2008
|
Every day the sun rises on Wall Street and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we examine some of these picks -- and the track record of the firm behind them -- so individuals can make better investing decisions.
In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 98,000 investors -- many of whom actually demonstrate better investing insight than published analysts.
In the case of BlackBerry purveyor Research In Motion (Nasdaq: RIMM), hordes of doubters have slowly been putting down their squirt guns as more top-performing CAPS investors have turned bullish on the stock. This waxing of support has been enough to upgrade the Canadian email solution provider from a less-than-favorable two-star rank to a more respectable three stars, with 77% of the 3,600 investors rating the company now bullish.
Certainly, Research In Motion's impressive first-quarter earnings report is underpinning new optimism. After all, the company made the financial equivalent of the triple play: topping revenue estimates and earnings estimates, and again upping its guidance for the coming year. The string of strong quarters is chiseling away at pessimism founded mostly on the belief that competing products from big names like Apple (Nasdaq: AAPL), Nokia (NYSE: NOK), Motorola (NYSE: MOT), and Palm (NYSE: PALM) will quickly squeeze the BlackBerry's market lead.
But here's my take: If the Apple iPod can mercilessly pummel dozens of imitators (including heavyweight Microsoft (Nasdaq: MSFT)) that can do everything it can feature-wise, why is it so hard to believe that RIM's email solution will hold up against Johnny-come-lately knockoffs? RIM has done one thing for more than a decade -- mobile push email. In my view, as more investors see RIM's lead holding up against competition, doubts that this premium-priced stock can beat the market will fade.
But mine is only one opinion among thousands. To see what the very best CAPS analysts are saying now about Research In Motion -- as well as other winning stocks they are picking -- head on over to CAPS and have a look. The community research and resources in CAPS are totally free, unlike analyst opinions that are reserved for paying clients.
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