Wednesday, December 9, 2009
RIMM vs AAPL
Itz Pix Portfolio exited Apple (AAPL) this week as it dropped below the $190 stop. Apple rallied 4% today on an Oppenheimer report that it may start production of its tablet in early 2010, however it maybe already factored into its stock price (*see video clip below). In after hours trading Apple was down $5.00 ($192.77).
Itz Stock Chartz has suggested RIMM in its portfolio, granted although RIMM is mainly a wireless company, Apple is also into pc's to be fair. Research In Motion is most famous for its Blackberry.
RIMM expects to earn $4.15 this year and $4.81 next year, as for AAPL $7.78 & $9.40.
For Apple that's a 20.8% YOY growth and it trades at 25 times or 1.2 times growth. Now as for RIMM it's YOY growth is 16% and it trades for 15 times eps. If one were to use Apple's ratios, it would suggest it trade at a 19 P/E and the stock should be trading at $79 this year and $91 next year's earnings. RIMM is trading up 1 cent in AHT @ $64.14 from it's Wednesday close.
RIMM reports Q3 earnings next week, it has beat Wall Street analysts expectations for the last three quarters. While there is no guarantee it will continue doing so, I do think that the company can beat the third quarter estimate (which is $1.04).
2010 is going to be the year of "Mobility" and the market for smart phones will expand, even with Droid, the pie is growing and everyone will see more business. >>Read More