The glass is both half full and half empty at Research In Motion
The company behind the trendsetting BlackBerry smartphone is warning that it will be on the low end of earnings guidance, but it's also raising its subscriber count target.
Wall Street doesn't like the mixed fruit. Shares of RIM are getting slammed this morning, but I think Mr. Market is overreacting. At this point -- in this economy -- I'd rather see RIM gaining ground than fretting over its milking prowess.
Despite the onslaught of Apple's
The company is now projecting that net new subscribers during the quarter that ends this month will clock in at roughly 3.5 million or better. It had originally targeted net BlackBerry growth of just 2.9 million users.
This is healthy burst for a company that began the quarter with an account base of just 21 million BlackBerry users, after wrapping up its fiscal third quarter by landing 2.6 million net new subscribers. Sure, we're also looking at the holiday quarter this time around, but since when did a corporate phone become a stocking stuffer?
Oh, that's right. BlackBerry has crossed over into the mainstream. And the better than expected addition of wireless jockey subscribers bodes well for the recently introduced BlackBerry Storm and Bold models.
We live in competitive times. Computer makers are jumping in. Beyond the evolution of Hewlett-Packard's
Isn't growing its share of accounts more important than where RIM lands on its original profit projection of $0.83 a share to $0.91 a share for the current quarter? We're talking about the importance of not just landing new users, but locking them up with contracts as the competition heats up.
I'm not a RIM cheerleader. In fact, I suggested that investors dump the stock last summer. It was the right call then. The stock was way overpriced at more than $140. Now I'm going to switch gears and point out that the stock is a bargain, trading at a third of last year's highs yet clearly still growing. This morning's knee-jerk wave of selling is the perfect opportunity to snap up a niche leader, until proven otherwise, at a great price.
Make the most of the half-empty glass that Wall Street sees today. Raise a toast and drink down the optimism that nobody sees.
Other smart smartphone connections:
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Longtime Fool contributor Rick Munarriz has never gone to a U-pick berry farm, though he's always wanted to pull over when he sees one in season. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. He does not own shares in any of the companies in this story. The Fool has a disclosure policy.