RIM INVESTORS:
Reuters, the world's premier financial reporting company has just released its most recent analiysis on RIM Semiconductor.
In order limit the size of this message, the full report will follow in a seperate message.
Of note:
1. Reuters determines RIM a sector competitor with the likes of: Conexant, Alcatel, PMC-Sierra, Texas Instruments, Motorola, Metalink and Broadcom. For an OTCBB company, this is highly unusual and not likely to happen unless significant product and revenues are certain. (See Peer Comparison, page 2)
2. The current P/E ratio for the sector as a whole is 25.14. (See page 6.) Based on an average P/E of 25, when RIM’s earning reach $100 million, assuming the current 322 million shares outstanding, the projected stock price is $7.76.
Even with 500 million shares outstanding, given the same earnings, the stock price would be $5.00.
IMO, earnings of this magnitude, could be realized within the first 18 months of product release.
Coompanies, like RIM whom the market perceives as having high potential for future earnings growth trade at even higher PE ratios. Broadcom, for instance, is trading at a P/E of around 55. (See page 2) If this occurs, the RIM stock price moves significantly higher.
3. Again, contrary to some on this message board, the overall sentiment by the investment community regarding RIM Semiconductor stock is bullish. (See page 5). The 50-day moving average is cycling upward and above the 200-day moving average. Note: Reuters determines this to be a very bullish market outlook.
4. Price performance: Over the past 26-weeks, RIM stock has outperformed virtually every other company in its sector. (See page 5.) While some are still having juvenile debates over who is right, many it appears, are able to wade through the rhetoric, and position themselves to make fortunes with this stock.
5. Finally, there are many valuations and projections within the Reuters analysis that indicate a company that has yet to receive revenue. This cannot be denied.
The very fact Reuters would begin coverage of an OCTBB company however, at this stage in its development, speaks volumes about how the objective financial markets view this company's prospects for the future.
Enjoy the report.
AI
