2-Star Stocks Poised to Plunge: Research In Motion?

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, BlackBerry maker Research In Motion (Nasdaq: RIMM  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at RIM's business and see what CAPS investors are saying about the stock right now.

RIM facts

Headquarters (founded)

Waterloo, Canada (1984)

Market Cap

$37.66 billion

Industry

Communications Equipment

TTM Revenue

$12.25 billion

Management

Chairman/Co-CEO James Balsillie

Co-Founder/Co-CEO Michael Lazaridis

4-Month Return

88%

TTM Price-to-Earnings (RIMM and S&P)

21.1 and 14.7

Competitors

Apple (Nasdaq: AAPL  )

Palm (Nasdaq: PALM  )

Nokia (NYSE: NOK  )

CAPS members bearish on RIMM also bearish on

Google (Nasdaq: GOOG  )

Amazon.com (Nasdaq: AMZN  )

CAPS members bullish on RIMM also bullish on

General Electric (NYSE: GE  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 253 of the 1,127 All-Star members who have rated RIM -- some 22% -- believe the stock will underperform the S&P 500 going forward. Among the entire bear population are grandy47 and jstegma, who is ranked in the top 0.2% of our community.

Just two days ago, grandy47 tapped the stock as a not-so-smart decision:

Their hardware is chunky. Their software lags. RIM is years behind Apple and Palm in all aspects of smartphone design. They survive only in their patented enterprise solutions which won't hold forever. There is room for continued growth over the near term, but looking ahead, RIM will be left in the dust by its competitors.

In a pitch from last month, jstegma also warned of more downward motion:

RIM is at its peak right now. Think about the life cycle of cell phone popularity. Name one cell phone maker from 10 years ago that would have been a good investment. Motorola. Nokia. Panasonic. Ericsson. Those are all various cell phones that people have owned at one time. None of the stocks is looking all that great right now though. So why would you want to invest in a cell phone company that is currently at the height of its popularity and pay 20 times earnings?

What do you think about RIM, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple and Amazon are Motley Fool Stock Advisor picks. Google is a Rule Breakers recommendation. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (2) | Recommend This Article (13)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 08, 2009, at 5:38 PM, Aeoran wrote:

    Wow, look at the RIM hate... but somehow this all seems so familiar. Every year, there is RIM hate. If CAPS were ten years old, RIM would still be rated 1-3 stars every time. Heck, has the Fool ever looked at this company, all the way up from a market cap of $200M to its present $37B? Methinks they missed the boat every bag up, and don't want to admit that they did. Every. Single. Bag. Up. For an otherwise great investing service, Motley Fool is not doing itself a great service by figuring out how it missed a pretty darn glaringly obvious 30-bagger - and a much more solidcompany than HANS or the other multibaggers constantly referred to in its articles.

  • Report this Comment On July 08, 2009, at 5:41 PM, Aeoran wrote:

    Duh. Make that a 200-300 bagger, not a 30-bagger. Even more of a reason for the Motley Fool to figure out everything it missed.

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