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LORTAP KCOTS

01/24/07 10:32 AM

#55963 RE: cosmoworld7 #55962

that is not how it works, cosmo.... the dilution is going to keep on coming, as long as the company needs to pay those big saleries and bonuses...
you probably meant it will stop the share price from sliding down further...
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WHP03

01/24/07 2:07 PM

#55988 RE: cosmoworld7 #55962

Cos - even if those pie in the sky dream thoughts were to come true, the problem is the dilution damage has already been done. 500MM shares out, for all intent and purposes, means RIM needs to do several hundred million dollars in revenue before many if any longterm sharesholders are going to get even part of their money back.

$100MM in sales... 25% top-line pret-tax margin..., expenses, etc... lets say $10MM, to be generous, in earnings.. $0.02/sh with a mulitple of even 40 = $0.80/sh...

The probability of RIM making 2 cents/sh and getting a multiple of 40 is pretty generous, let alone $100MM in revenue, when they're dealing with "Partners" such as EC and Logic, neither of which are even as well off as RIM itself... and we all know RIM is a leaky boat in 1000' of water 1000 miles from the closest shoreline.