Quick Take
- Short (RIMM)
- Long (AAPL)
- Long (GOOG)
RIMM is way overpriced based upon what amounts to an overstatement of future expectations. Research In Motion will face a upcoming problem with google’s open source cell phone platform nicknamed “android”.
Android has what Research In Motion LACKS with the Blackberries, including the new Blackberries. Android had an open source SDK or software developers kit, released months ago. Along with this google has offered 10 million in money to the best developers, in otherwords, all the apps that were developed for hacked iphones and blackberries will pail in conparison to android because of the sheer amount of nerds google had programming. It was a rather engenious move, causing by some estimates 100,000 programmers to develop for them for free. All of this on a sleek blackberry esque touchscreen format, one which could easily be adopted by other companies. This phone is sure to give Google (GOOG) more in advertising revenue.
Overall, however, it is my belief that over the next few months, Research In Motion Limited (RIMM) will have a underperformance of the BOLD when the 3G iphone comes out on the 9th. My suggestion on action would be a pair trade of buying AAPL and Shorting Rimm Immediately, and selling after the 3G news event on the 9th.
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2 responses so far ↓
1 amit // May 28, 2008 at 12:22 am
Was expecting something much more meaty than this. Look forward to analysis that people put and happy to visit their respective blogs but posts like this don’t go down well. Remember seeing better ones in the past and hope you can continue to post like those in the future. Best wishes
2 Googleplexed? Heres my opinion on Google Inc. (GOOG) | by Jay Zalowitz, The Fresh Prince of Investing // May 28, 2008 at 3:04 pm
[...] Comments amit on A shot at Research In Motion Limited (USA) (RIMM)Long commodities? You must be smoking Potash (POT) | by Jay Zalowitz, The Fresh Prince of Investing [...]
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