Thursday, June 19, 2008

Research In Motion

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional.

I bought some Research In Motion (TSX-RIM) at end of 1999 and in the first part of 2000. I paid some $12,800 for this stock. I have since sold off about $30,000 (when it has split) and the stock I have left is worth some $74,960. According to Quicken, I have made an average annual return of some 31% on this stock.

This stock owes me nothing! I will hold it for a while longer. If it goes much higher, I will sell off some more. Each time I have sold some, I have brought good dividend paying type stock. I will do so again. This stock is certainly making up for the losses I have suffered in bank stock.

What is not to like about this stock? I have just updated my spreadsheet on it and there is little to question. This stock not only trade in Canada, but also in the US (NASDAQ-RIMM). The stock reports in US$. As in other Canadian stock that reports in US$, this stock has done better in US$ than in CDN$ because of the differences in exchange rates over the last few years.

The P/E on this stock is quite high, but this is to be expected from such a growth stock. It is expected the Earnings per Share (EPS) will go up strongly, so part of the high P/E is the expectation on higher earnings to lower the P/E. The Accrual Ratio is also high, but this stock will continue to go up while it is so liked by the market. This stock went down in the last bear market, but it has only gone up since. It is a stock that is helping the TSX make some of the gains it has this year.

Debt is very much under control. The Return on Equity (ROE) is very good. There is strong cash flow, revenue and earnings. However, this is a Tech stock, and technology can change very rapidly.

See my spreadsheet at See my website at

RIM designs, Manufactures and markets wireless solutions for the mobile communications market. The company is famous for the Blackberry. It is an international company with offices in North America, Europe and Asia-Pacific. Its site is at

I have been lately looking at TSX Group (TSX-X) and will post the spreadsheet when I have finished it.

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