View RIM from stock price

If a company has been listed, we can see the future of the company from its stock price. In general, we can look at its PE and other indicators too much.

Based on this, I plan to analyze RIM briefly.

RIMM is listed on Nasdaq and the company's stock code is RIMM. Figure 1 shows the share price of the company in the last year. Currently, the latest price is RMB 147.55 (price ).

Figure 1 trend of RIM's share price in the last year

From the above we can see that currently RIM's PE is 65 times, but the average Nasdaq PE is around 20. Why should we give RIM a value two times higher than the average price-earnings ratio? Under normal circumstances, either it is speculation or it does have a bright future for development. From the perspective of RIM, the former is unlikely to be hyped, so I would rather trust its future.

Speaking of PE, I 'd like to give a simpler example. Take Google and Baidu for example. Let's take a look at its summary:

Figure 2: google stock Summary

 

Figure 3: baidu stock

 

I think we are very familiar with both companies. Because they are engaged in search. Check that Google's PE is 39.39, while Baidu's PE is 116.41. You may wonder why Baidu is three times that of Google. I personally think that Baidu is growing faster than Google. Why? This topic is far away. Let me briefly talk about my views. Google is very mature, and its financial reports show that the current business growth rate has declined. So Google has been expanding other businesses or taking over overseas markets. However, unlike Baidu, Baidu faces China and is also the world's largest user group. From the perspective of our environment, the space left for Baidu is huge. Therefore, the growth rate is fast. Naturally, everyone is willing to give it a higher PE.

A company is not about how big it is, but about its growth.

It can be seen from the above that today's close is basically the highest price. If you pay attention to the international financial environment, it is very valuable to go out of the new high in the stock price. Let's take a look at the growth rate of RIM and Nasdaq in the last year. We can see that RIM has increased by 157.91% in the past year, that is, the share price has increased by 1.5 times, but the Nasdaq index has fallen by 6.26% at the same time, so you should see that it has grown.

Figure 4 Comparison Between RIM and Nasdaq in the last year

Why is RIM still able to grow by 1.5 times in a poor international environment? It is really NB, which is inseparable from its growth. Let's take a brief look at the data provided by its latest financial statement:

Revenue: 6,009,395 (2008-03) 2,972,292 (2007-03), 971,258 (2006-03)

EPS: 2.31 (2008) 1.14 (2007-03), 0.48 (2006-03)

From the perspective of vendors, we can see that, basically, all of them are 100% growth,

Let's take a look at the source of revenue:

• Ergonomic $2,215,951
• Server 56,116
• Maxcompute 173,187
• Other 87,849

From the above we can see that most of RIM's revenue comes from Device. In other aspects, the income is too small. We also know that in the future, we will focus on services, but we will not be able to sell machines alone. Here we also have reason to believe that RIM is still promising in other fields.

Let's take a look at the distribution of revenue in various countries:

• Canadian 7.3%
• US 58.7%
• UK 7.7%
• Other 26.3%

Look at the above Other, there are 26.3%, too few, ignoring our china.

After the above analysis, what does RIM do if it does not increase by 1.5 times? Now, what is the prospect of RIM?

The above is a brief analysis, and there must be some shortcomings.