Company name Research In Motion Limited (USA)
Stock ticker RIMM
Live stock price [stckqut]RIMM[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Fair
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $20.03
Target stock price (averages with growth) $54.43
Target stock price (averages with no growth) $72.7
Target stock price (manual assumptions) $17.96

The following company description is from Google Finance: http://www.google.com/finance?q=rimm

Research In Motion Limited (RIM) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. RIM provides platforms and solutions for access to information, including e-mail, voice, instant messaging, short message service (SMS), Internet and intranet-based applications and browsing. RIM’s portfolio includes the BlackBerry wireless solution, the RIM Wireless Handheld product line, software development tools and other software and hardware. On June 2, 2010, Harman International sold its software operating systems unit, QNX Software Systems, to the Company. On March 25, 2011, RIM purchased 100% of the shares of a company whose technology is being incorporated into the Company’s developer tools. On April 26, 2011, the Company purchased certain assets of a company whose acquired technologies will be incorporated into the Company’s products. In June 2011, the Company acquired Scoreloop.

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good, in fact the company ranks as a Good company, but there are some concerns with the price of the stock. Most notably, it has really been beaten up by its competitors and may not be able to survive as a stand-alone company much longer. One of the reason’s it still has a Good Confident Investor Rating is because the P/E is so low compared to its competitors which in turn begs the question if the company is really still viable.

While the company has a Good rating, I have removed it from my Watch List.

Several times a year, a Confident Investor must reevaluate the companies in the portfolio. Keeping your money in a stock that no longer qualifies as a “Good” company can end up hurting your investment performance a great deal.  Also, there are a lot of Good Companies so losing the worst of the best is not going to impact the ability to have a balanced portfolio.  Over the coming days, this site will evaluate each stock on the Watch List.

 

Company name Research In Motion Limited (USA)
Stock ticker RIMM
Live stock price [stckqut]RIMM[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $74.27
Target stock price (averages with growth) $131.92
Target stock price (averages with no growth) $127.32
Target stock price (manual assumptions) $57.97

The following company description is from Google Finance: http://www.google.com/finance?q=rimm Research In Motion Limited (RIM) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information, including e-mail, phone, short message service (SMS), Internet and intranet-based applications. RIM?s portfolio of products, services and embedded technologies are used by organizations worldwide and include the BlackBerry wireless solution, the RIM Wireless Handheld product line, software development tools and other software and hardware. Its subsidiaries include Research In Motion Corporation, Research In Motion UK Limited and RIM Finance, LLC. On June 2, 2010, Harman International sold its software operating systems unit, QNX Software Systems, to the Company.

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

Company name Research In Motion Limited (USA)
Stock ticker RIMM
Live stock price [stckqut]RIMM[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good
ANALYSIS
Confident Investor Rating Good
Target stock price (TWCA growth scenario) $68.14
Target stock price (averages with growth) $72.19
Target stock price (averages with no growth) $35.78
Target stock price (manual assumptions) $53.64

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

Company name: Research In Motion Limited (USA)

Stock ticker: RIMM

Live stock price feed: [stckqut]RIMM[/stckqut]


P/E compared to competitors: Good


Employee productivity: Good

Sales growth: Good

EPS growth: Good

P/E growth: Poor

EBIT growth: Good


Confident Investor Rating: Good


Target stock price (high): $926.8

Target stock price (low): $101.89

At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

A short time ago, I explained how to grow your holdings in a company for free. I more fully explain this method in my book, The Confident Investor. After you have practiced this method for a while, you will come upon the situation where you have to choose the best company to receive your investment dollars.

As I have explained before, you will have divided your portfolio into equal allotments. You should have at least 10 allotments but you could have 20-50, if your cash supports this amount. For the sake of argument, lets say that you have decided to have 10 allotments in your portfolio. Eventually, you will run into the situation where you have already invested some of your allotments, let’s stay 7 in this case, and only have 3 more allotments to invest. If the market is growing nicely, you may find 5 companies on the Watch List that are presently ready for investment.  This creates a dilemma – you need to choose the best 3 of the 5 companies.

This situation is not rare and I personally experience it on a regular basis. Here is my logic to reduce the number of potentials:

  1. Recheck to make sure the indicators are all equally strong. In many cases, I can eliminate one choice because the stock barely passes all of the minimum tests. If I have to be picky, the weak ones need to get a bit stronger so they get trimmed off the list.
  2. Am I already exposed to the market in my other allocations? For instance, I would want to avoid having 2 oil companies or 2 specialty retailers. I would also want to avoid a supplier and its main customer. Once again, this probably doesn’t matter, except if I am trying to eliminate a stock.
  3. If the first 2 filters don’t cut down my choices, I look for where I have existing free shares already in my portfolio. The company that has the least accumulated free shares is the company that I will eliminate.  For instance, if I am choosing between two companies and I have 35 free shares in one and 85 free shares in the other, I will choose the 85.  My goal in this situation is to develop a portfolio that has a full allotment of each company that I am tracking. I have explained this earlier, once I have achieved a full allotment in a company, I will suspend building up more shares in that company.

Hopefully, by applying these three simple tests you are able to decide which stock is prime for your portfolio.  If some of this is not clear, you can ask me questions on Twitter or Facebook or leave a comment below. You can also achieve a greater understanding by reading my book, The Confident Investor. You can purchase my book wherever books are sold such as Amazon, Barnes and Noble, and Books A Million. It is available in e-book formats for Nook, Kindle, and iPad.