Friday September 1, 4:41 pm Eastern Time
worldlyinvestor.com Region of the Day
PDA Market Could Ride on RIMs
By Bob Beaty, Canada Columnist
Research in Motion is the upstart in the wireless handheld market. Its stock is
zooming.
Few of us ever get to talk to programming gurus, let alone ask them questions about such
pedestrian matters as their opinion of handheld computers. Well, I did, and you may live
vicariously through my findings.
I need a handheld thingy to help my weary mid-40 rapidly disorganizing mind bring at least a modicum of order into a life
becoming far more complicated than I ever dreamed. So, as I found myself in San Francisco buying this fellow a cup of coffee
in an unrelated matter, handhelds came up in the conversation. To my utter surprise, he yanked Research in Motion's
(Nasdaq:RIMM - news) 957 handheld out of a Batman-like utility belt he was wearing.
He's had a Palm (Nasdaq:PALM - news). He's had a Visor (Nasdaq:HAND - news). He now has a 957, loves it, and won't
ever go back. The guy's programmed satellites for heaven's sake -- his opinion matters; at least to me.
He also made some interesting observations. Unlike the competition, the 957 is always on and e-mail finds him, as opposed to
having to be retrieved. He can thumb email responses while driving down the freeway (see why I don't name him?) and it does
everything he needs it to.
Like most users, I suspect, add-on third-party software is of little use to this fellow. Purists like him want only features like a
to-do list, calendar/datebook, notepad, e-mail and Web access.
Industry Upstart
RIM is considered the upstart in the handheld sector, coming from relative obscurity to be a threat. Its stock, which is zooming
at the moment, may not be for conservative, buy-and-hold types. But if you want a little wireless tang in your portfolio then it
could be perfect. Know going in, however, that you're in for a bumpy ride.
The shares bounced off a correction low of $24 in late March and has since more than tripled to a current level of $74.
Twelve-month trailing earnings are growing nicely at $153 million as at May 2000 versus $92 million for the prior twelve
months. Second-quarter earnings should be out soon. First Call consensus for fiscal 2000 earnings is around 45 cents a share
versus 21 cents for fiscal 1999. Still a concern, however, is the high market-cap of nearly $5 billion -- though a lot more
palatable than when the stock peaked at $160 in the first quarter.
My geek buddy also was puzzled as to why RIM hasn't licensed its software. He saw this as a potentially huge revenue
generator, unless some behemoth took the company out in the interim. Another small concern is the cost, though when the 957
is compared to a Palm VIIx, the $500 price tag is very competitive. And with Palm fighting a rear-guard action against
Handspring's low-end Visor with its new Palm m100, the high-end mobile business user requiring less toy-like features is still
very much up for grabs.
Deal to Expand
RIM announced a deal this week with private software firm Brience, Inc, to expand enterprise applications to the 957
handheld. Brience specializes in adapting and delivering proprietary corporate information to any handheld in customized form.
The applications for the mobile workforce are obvious. While competitors are going after the mass market, RIM has apparently
decided that the business market -- with its specific e-mail and enterprise information needs -- makes a growth niche that will
be easier to dominate rather than trying to be all things handheld. By delivering the smoothest and best access to business
critical corporate information, the 957 is quickly becoming a tool, as opposed to a toy.
That's not to say that Palms and Visors aren't good gizmos -- they are. The smart thing RIM has done is to realize that it is not
the mass standard, and much like Apple (NYSE:APL - news) computer, has found and continues to exploit a niche among a
large, particular group -- a business community that needs seamless access both to communication and corporate enterprise
applications.
And among the intelligentsia, at least so far, the 957 reviews continue to be good. And best of all, there are no little pen-thingies
or stylus to lose.
Bob Beaty is worldlyinvestor.com's Canada Editor. He worked for 20 years in the brokerage industry, in both Canada
and the UK. Now primarily Internet-based, he has written extensively on stocks, bonds and market-related issues for a
variety of Web sites. His column suggests investment and trading opportunities in the Canadian market. He does not
hold a position in any of the companies mentioned. Positions can change at any time.
In June 2000,
BlackBerry won
the 2000 PC World World Class Award
for Best Wireless Communication Device.
Kurs z.Z. 81$ - konstante Umsätze bei 1 Mio Stück
Charttechnisch Weg bis 100$ frei
Dies soll kein Pushversuch sein (wohl auch nicht möglich, bei den Umsätzen),
aber vielleicht interessiert sich ja noch jemand für diesen Wert.
Gruß Dampf
worldlyinvestor.com Region of the Day
PDA Market Could Ride on RIMs
By Bob Beaty, Canada Columnist
Research in Motion is the upstart in the wireless handheld market. Its stock is
zooming.
Few of us ever get to talk to programming gurus, let alone ask them questions about such
pedestrian matters as their opinion of handheld computers. Well, I did, and you may live
vicariously through my findings.
I need a handheld thingy to help my weary mid-40 rapidly disorganizing mind bring at least a modicum of order into a life
becoming far more complicated than I ever dreamed. So, as I found myself in San Francisco buying this fellow a cup of coffee
in an unrelated matter, handhelds came up in the conversation. To my utter surprise, he yanked Research in Motion's
(Nasdaq:RIMM - news) 957 handheld out of a Batman-like utility belt he was wearing.
He's had a Palm (Nasdaq:PALM - news). He's had a Visor (Nasdaq:HAND - news). He now has a 957, loves it, and won't
ever go back. The guy's programmed satellites for heaven's sake -- his opinion matters; at least to me.
He also made some interesting observations. Unlike the competition, the 957 is always on and e-mail finds him, as opposed to
having to be retrieved. He can thumb email responses while driving down the freeway (see why I don't name him?) and it does
everything he needs it to.
Like most users, I suspect, add-on third-party software is of little use to this fellow. Purists like him want only features like a
to-do list, calendar/datebook, notepad, e-mail and Web access.
Industry Upstart
RIM is considered the upstart in the handheld sector, coming from relative obscurity to be a threat. Its stock, which is zooming
at the moment, may not be for conservative, buy-and-hold types. But if you want a little wireless tang in your portfolio then it
could be perfect. Know going in, however, that you're in for a bumpy ride.
The shares bounced off a correction low of $24 in late March and has since more than tripled to a current level of $74.
Twelve-month trailing earnings are growing nicely at $153 million as at May 2000 versus $92 million for the prior twelve
months. Second-quarter earnings should be out soon. First Call consensus for fiscal 2000 earnings is around 45 cents a share
versus 21 cents for fiscal 1999. Still a concern, however, is the high market-cap of nearly $5 billion -- though a lot more
palatable than when the stock peaked at $160 in the first quarter.
My geek buddy also was puzzled as to why RIM hasn't licensed its software. He saw this as a potentially huge revenue
generator, unless some behemoth took the company out in the interim. Another small concern is the cost, though when the 957
is compared to a Palm VIIx, the $500 price tag is very competitive. And with Palm fighting a rear-guard action against
Handspring's low-end Visor with its new Palm m100, the high-end mobile business user requiring less toy-like features is still
very much up for grabs.
Deal to Expand
RIM announced a deal this week with private software firm Brience, Inc, to expand enterprise applications to the 957
handheld. Brience specializes in adapting and delivering proprietary corporate information to any handheld in customized form.
The applications for the mobile workforce are obvious. While competitors are going after the mass market, RIM has apparently
decided that the business market -- with its specific e-mail and enterprise information needs -- makes a growth niche that will
be easier to dominate rather than trying to be all things handheld. By delivering the smoothest and best access to business
critical corporate information, the 957 is quickly becoming a tool, as opposed to a toy.
That's not to say that Palms and Visors aren't good gizmos -- they are. The smart thing RIM has done is to realize that it is not
the mass standard, and much like Apple (NYSE:APL - news) computer, has found and continues to exploit a niche among a
large, particular group -- a business community that needs seamless access both to communication and corporate enterprise
applications.
And among the intelligentsia, at least so far, the 957 reviews continue to be good. And best of all, there are no little pen-thingies
or stylus to lose.
Bob Beaty is worldlyinvestor.com's Canada Editor. He worked for 20 years in the brokerage industry, in both Canada
and the UK. Now primarily Internet-based, he has written extensively on stocks, bonds and market-related issues for a
variety of Web sites. His column suggests investment and trading opportunities in the Canadian market. He does not
hold a position in any of the companies mentioned. Positions can change at any time.
In June 2000,
BlackBerry won
the 2000 PC World World Class Award
for Best Wireless Communication Device.
Kurs z.Z. 81$ - konstante Umsätze bei 1 Mio Stück
Charttechnisch Weg bis 100$ frei
Dies soll kein Pushversuch sein (wohl auch nicht möglich, bei den Umsätzen),
aber vielleicht interessiert sich ja noch jemand für diesen Wert.
Gruß Dampf
