This site crossed my path and since im fresh out of a stats class, this shouldn’t be too bad! lol. The data was collected by a business called YCharts.com, who visualize market information to identify companies with long-term competitive advantages and appropriate valuations. Valuation refers to the process of determining the current worth of an asset or company. In this instance, analyst (YCharts.com) had value in RIM and look into the company’s market value and capital structure. Let’s see what they found!!
With numbers projecting 49 million people in the U.S. ownining smartphones, with the market doubling and increasing in the future, RIM leads the mobile smartphone market in the U.S. They own nearly 42% market share, followed by the infamous Apple with ~25% share and Microsoft at 13%. As of now, Google’s Android takes 13% of smartphone subscribers. While RIM is in the hunt for North America, they excel globally. Co-CEO at RIM Jim Balsillie said,
“We continue to be focused on growing our business globally and we believe that the range of exciting new BlackBerry products being released in the coming months will create significant opportunities to accelerate RIM’s growth in the second half of the fiscal year.” Continue Reading for more >>>RIM’s international subscriber numbers nearly doubled in fiscal 2010. Countries like SouthEast Asia ,especially China are really trying to push BlackBerry for their region. RIM has 550 carriers & distribution partners in 175 countries. Just goes to to show how far RIM has taken the BlackBerry smarphone. Credit goes to the strong BlackBerry adoption in markets including Latin America, the Middle East and Western Europe. People from all over the world value the phones slickness and ability to communicate efficient in various forms.
Since previous RIM shares are being sold off, the valuation is intriguing for value investors. RIM’s earnings yield is over 8% and twice that of Apple and Google .
If we examine the market cap, RIM’s market cap in the middle of 2008 was over $75 billion but has fallen to a trifling $29 billion. Looking at the decline experienced in RIM’s market value, you would expect to see drops in revenue and earnings. However, during this time revenues more than doubled and earnings are up significantly.
In sum, looking at RIM’s history, they have dominated in the corporate market and history of innovating. BlackBerry has more than a standing chance to adjust to new consumer expectations. OS 6 is coming this year along with the ‘Blackpad’and a more focus on apps and entertainment. With some new up to-date features, combined with the efficient e-mail platform that BlackBerry already has, expect competitors to bite their nails on this one.
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