Investing

boooya

boooya

Well-known member
Site Supporter
Forum Sponsor
Any high risk investors on here care to chime in?
RIM down to $12.80 a share this morning, forecasters say it could easily double or triple in 2012.
Also Groupon and Netflix is doing very well and expected to significantly increase within the next quarter.
I can't see RIM going under for the amount of subscribers especially over seas, and there are some big companies interested in taking over RIM. Rumors of a take over have increase shares by 10%...
Thoughts??
Other companies looking to increase in 2012?
 
about 5% of my investments are in what would be considered "high risk". i wouldnt touch rim for the life of me, same with netflix. their boards are too volatile.
 
Just go put it all on Black on roulette =D

But I woudln't put more than 10 % of your total portfolio into this kinda of investment.
 
Last edited:
rutakin said:
RIMS been there before and in 6 months the price was 5 times....


of your choices that's the one to bet on....
Click to expand...

That's what I'm thinking.
$5,000 invested at $12 a share , jump up to $70-80 a share and your into some coin. Sure you may loose it all but I very much doubt it.
It would have to be a sell as soon as it spiked kinda deal.
 
Last edited:
I monkey with high risk stock, I'm seriously considering RIM right now.

Only play with money you can afford to loose.
 
boooya said:
That's what I'm thinking.
$5,000 invested at $12 a share , jump up to $70-80 a share and your into some coin. Sure you may loose it all but I very much doubt it.
It would have to be a sell as soon as it spiked kinda deal.
Click to expand...


RIM is trading below book value and at liquidation levels. You aren't at risk of losing it all as RIM is trading at the value of their physical assets. Indicators will tell you that the stock is way oversold. RIM's multiples are at incredible levels and its difficult to see the stock go much lower this year. They have over a billion bucks in the bank, are still highly profitable, have 75+ million subscribers etc... and are expanding internationally.

On the flip side, be aware that RIM's stock has been and is still being heavily shorted. There is tremendous pressure weighing this stock down and the media/analyst beat up on RIM daily which is only adding fuel to the fire. So, while in theory RIM shouldn't really drop much more, you never know with the way the markets are. Sentiment on RIM is so incredibly negative as many investors are justifiably frustrated to the point that they have probably just thrown in the towel. RIM's expansion is into areas where there is less profit margin so it hasn't done much to help the fact that they are declining in market share in North America. RIM has been just way to slow in responding to changes in the marketplace and I dont know if they've fixed that issue. They have been plagued with delays and it seems like the answer to this issue is that they no longer declare deadlines.. They say the new BB10 will be available later this year rather than giving a more detailed timeline.

I think a lot of people have taken a "wait and see" stance on RIM as they want more proof they will succeed rather than speculate that they might succeed again. I would absolutely not call RIM an "investment". Its really a gamble at this point. RIM is also going to be releasing quarterly earnings numbers later this month and it could be bad or it could pleasantly surprise. Analyst seem to think its going to be bad but who knows.

I also would not count on a buyout any more. You never know but it seems like RIM doesn't want to be bought out as they put the wheels in motion and think they can dig themselves out of the hole they put themselves in. Also, I think every potential suitor has gone a different direction. Microsoft I think was the best bet but they passed on RIM and are going with Windows phone 8. I don't think a hostile takeover by a private equity firm could happen either because the Canadian Govt might decide to block it. If RIM fails miserably with BB10, perhaps a buyout could occur then by somebody who wants to scoop up the pieces but it would not be at a great premium.

I also think your expectations of 70-80 is way too high. I know most would just like to see this stock in the $20's where it probably should be right now. Even if they return to glory, its a different game right now and they will not regain the dominance they once had as Apple and Android are here to stay.

Optimistically, buying RIM stock at these levels, you could hope for a double or triple but you never know. Its worth a play though but then again there are many stocks out there that are worth a play.
 
Remember, OP, thousands of other companies are out there. Even if you think RIM is good value, do you suppose that they are the absolute best in the whole world?
 
ATVI, FB, AAPL, GOOG from most to least risky.

ATVI any time you catch it at $11.50 or less, dump money into it. The pattern may change though, I've made a few thousand off this.

FB don't know crap about it yet, but I don't see Facebook dying.

AAPL...I should have invested after Steve Jobs died, it dropped and quickly rose.

GOOG, only goes up.

Or just do it the easy way, save up $$$ now. When the next economical crisis hits, buy a **** ton of gold or precious metal funds. When the economy recovers, sell it all. I tripled my invested amount doing this last time and looking at previous data, the random drops in gold or precious metal funds match economic crisis timings.
 
FB can be risky as most it's revenue stream is from ads. Once those gone or a better competitor comes or some new fad comes along bye bye fb. Also their game apps seems to be going to downhill as they've aggresively try to get players to pay for their game apps through gaming addictions. Signs of desperation if anything.

I have a stock brokerage account but haven't used it yet as I haven't really analyzed any stocks yet but I notice most Calgary companies stock goes up especially those in the energy sector. Hell the company I work for made a record profit through their refineries last year despite the recession and I got a big bonus out of it.

RIMS advantage is the cheap labour they get from UofWaterloo just few blocks down but why they can't be profitable I can't understand. They've got massive brain powers that no competitors can match but they lack a Steve Job type of vision and leadership. RIMS Research in Motion bah they need to branch out into other sectors like Apple did when it was being overpowered by Microsoft and not be another IBM catering to the low margin enterprise sectors.
 
psycho44 said:
FB can be risky as most it's revenue stream is from ads. Once those gone or a better competitor comes or some new fad comes along bye bye fb. Also their game apps seems to be going to downhill as they've aggresively try to get players to pay for their game apps through gaming addictions. Signs of desperation if anything.

I have a stock brokerage account but haven't used it yet as I haven't really analyzed any stocks yet but I notice most Calgary companies stock goes up especially those in the energy sector. Hell the company I work for made a record profit through their refineries last year despite the recession and I got a big bonus out of it.

RIMS advantage is the cheap labour they get from UofWaterloo just few blocks down but why they can't be profitable I can't understand. They've got massive brain powers that no competitors can match but they lack a Steve Job type of vision and leadership. RIMS Research in Motion bah they need to branch out into other sectors like Apple did when it was being overpowered by Microsoft and not be another IBM catering to the low margin enterprise sectors.
Click to expand...

Very very doubtful. Literally every gaming platform (except xbots...or maybe even that is, I don't know) is linked to Facebook. PC gaming was sorta "dying" for a while but recently shot up last year and the year before. Browser games had a HUGE role in this. Seeing as how some browsers are actually managing to pull out full 3D MMOs and HTML5 may continue to revolutionize the browser gaming scene, Facebook will be no where near death and I can only see it continuing to grow. Google was supposed to be fad remember? =P
 
But those stocks are already selling high, yes they will most likely keep climbing but at a snails pace.
Buying into apple is at around $550 a share, profit margins are low but solid.
I'm looking to gamble and go big within the year. Risky business but if you play the cards rite and get lucky it can pay off big.
That's why I'm thinking RIM, they can't get any lower lol.
 
boooya said:
But those stocks are already selling high, yes they will most likely keep climbing but at a snails pace.
Buying into apple is at around $550 a share, profit margins are low but solid.
I'm looking to gamble and go big within the year. Risky business but if you play the cards rite and get lucky it can pay off big.
That's why I'm thinking RIM, they can't get any lower lol.
Click to expand...


Apple especially seems to only go one way which is up and the latest forecast out there is $730.. However, at some point Apple stock is going to hit a wall and there is definite downside risk. Like Warren Buffet says "Be fearful when people are greedy, be greedy when people are fearful"... Right now, people are greedy with Apple and it seems Apple can do no wrong but that can't last forever and competition is only going to get more aggressive. On the other hand, people are very fearful with RIM so it might just be a case to be greedy there (or get the F out of).

It sounds like you have accepted the fact that there is risk with RIM and its going to be a gamble this year. There is potential for quite a bit upside in a short period of time though if RIM manages to get there act together and low people away with new products... The jury is still out on that. Nonetheless, there is certainly more upside potential for RIM than with Apple or Google. If RIM pulls it off, you could be looking at (in my opinion) 200% - 400% profit in not that long a time..

The question is then, "when should I buy RIM". It might be prudent to wait until after their latest earnings report to buy some.. Or maybe buy a little bit on a down market day now and see what happens with the earnings report.... If earnings are surprisingly good, the stock could pop a couple bucks but in that case, it would still be cheap and a buy... So you might want to wait for confirmation of an upward trend before jumping in.
 
I've never owned AAPL and I'm kicking myself for not having bought it. But ... It doesn't pay a dividend (that may change ...) and I don't like buying a stock that is near its all-time high (which it always is, so the buying opportunity that I look for has never come). If they announce a dividend it will probably skyrocket. But if they have a mis-step, or if there ever comes a situation where all the people who want to buy it already own it, it could go down. I'm okay with being in other stuff ...

I've also never owned RIM because a company that is so dependent on (more-or-less) a single product that is subject to the whims of consumers is inherently risky. Put it this way, I am as glad to never having owned RIM as I am unhappy to have never owned AAPL. They cancel each other out. Again, on balance, I'm okay with having been elsewhere.

Sooner or later RIM should stop going down. I can't see them going bankrupt. But I think it has further down to go from here ($13.34 right now), and just because something stops going down doesn't mean it will go significantly up from there. If BB10 is a hit then it could very well go up. If it isn't, then it could very well crash and burn. I'm happy to continue staying away from this.

Tech stocks are commonly "hot stocks" and there's a fair argument that those are grounds to stay away ...

I've preferred to stay with old fashioned (and mostly income producing) oil, gold, potash, REITs, manufacturing (not tech), and consumer stocks.
 
Brian P said:
I've preferred to stay with old fashioned (and mostly income producing) oil, gold, potash, REITs, manufacturing (not tech), and consumer stocks.
Click to expand...
All expensive to buy into. Bet yes I agree 100%.
 
I personally like Netflix.

I'm in the content production and distribution space so work in the industry and did some consulting for them back in 2005. I just liked their Management, business plan and they partnered with the right people to do it.

I sunk $25k in at $12 in 2005 and cashed out $300k back in 2011 when the stock was about $250. I still have about 900 shares left which I'll hang on to. They will be making significant announcements about Asia and Europe this year. I can definitly see an up side, its just not going to be like it was between 2009 and 2011. The balance sheet looks fairly clean, I'd just prefer a little more free cash flow but again most of that is going to infrastructure and ops to expand.

Looking at the industry as an insider, linear TV is as dead as, well dead. About 50% of the spot revenue that was going to linear broadcast traffic has migrated to VoD and Web in the last 10 years. Broadcasters are hurting. I personally have not watched appointment based linear TV for years. These types of services are the future and with the final ratification of DASH and its adoption by the CE device manufactures the mso's and telcos will be a dumb pipe in a few years.
Forum Sponsor
 
You must log in or register to reply here.

Back
Top Bottom