Continually upset with the inaccuracies around RIM, an author over at Guru focus has put up 2 articles the most recent laying out the math behind a truer valuation of RIM as it stands at the gates of BlackBerry10. Posted back in July ‘Time to Buy Research in Motion‘ and closing out his latest article today stating, “Even today with FCF at $2.5 billion, RIMM is worth $30 to $40 per share. That just assumes moderate BB10 success.” Hit the break for more on his valuation and key quotes from the authors keen perspective.
However, something strange is happening in the media. For the past year up to maybe a month ago, more than 90 percent of all articles were negative. But now people are changing and realizing that things are not that bad. Today, I’d say that over 50 percent of articles about RIMM are positive.
While past results are not an indication of future outcomes, I felt compelled enough to read more. I started with articles as I usually do. I then went in search of the facts to support the opinions of these articles. Turns out, the more I read the more I realized that authors are being single minded and often ignoring facts or conveniently ignoring what does not fit with their argument. I even ran across the occasional lie. “Is RIM the biggest example of groupthink I have ever seen?” I thought to myself. Can everyone be wrong?