Comments on: RIMM: Research In Motion Dusts Me http://stockmarketbeat.com/blog1/2007/06/29/rimm-research-in-motion-dusts-me/ Our beat: The stock market. Our job: Beat it. Fri, 21 Nov 2008 03:13:24 +0000 http://wordpress.org/?v=2.2.1 By: Trent http://stockmarketbeat.com/blog1/2007/06/29/rimm-research-in-motion-dusts-me/#comment-42518 Trent Mon, 02 Jul 2007 12:12:53 +0000 http://stockmarketbeat.com/blog1/2007/06/29/rimm-research-in-motion-dusts-me/#comment-42518 One thing you can say for RIMM and AAPL - they aren't boring to watch. One thing you can say for RIMM and AAPL - they aren’t boring to watch.

]]> By: Josh http://stockmarketbeat.com/blog1/2007/06/29/rimm-research-in-motion-dusts-me/#comment-42457 Josh Mon, 02 Jul 2007 05:27:31 +0000 http://stockmarketbeat.com/blog1/2007/06/29/rimm-research-in-motion-dusts-me/#comment-42457 I am a seller of AAPL puts (naked) I am a seller of AAPL puts (naked)

]]> By: Josh http://stockmarketbeat.com/blog1/2007/06/29/rimm-research-in-motion-dusts-me/#comment-42456 Josh Mon, 02 Jul 2007 05:26:16 +0000 http://stockmarketbeat.com/blog1/2007/06/29/rimm-research-in-motion-dusts-me/#comment-42456 RIMM puts - I had sold some July 135 puts (naked) a few months ago. The day before the earnings I bought them back fearing that expectations might be too high. I made a little bit of money, but I too was shocked at the blowout quarter. A significant portion of Nokia phone sales are on the low end in Emerging Markets and will not be nearly as profitable as the IPhone. RIMM puts - I had sold some July 135 puts (naked) a few months ago. The day before the earnings I bought them back fearing that expectations might be too high. I made a little bit of money, but I too was shocked at the blowout quarter.

A significant portion of Nokia phone sales are on the low end in Emerging Markets and will not be nearly as profitable as the IPhone.

]]> By: Manny Backus http://stockmarketbeat.com/blog1/2007/06/29/rimm-research-in-motion-dusts-me/#comment-41667 Manny Backus Sat, 30 Jun 2007 00:12:56 +0000 http://stockmarketbeat.com/blog1/2007/06/29/rimm-research-in-motion-dusts-me/#comment-41667 Yesterday, I came across an article in the WSJ with a surprising conclusion: AAPL may be overvalued! To reach this conclusion, they compare AAPL’s handset business with Nokia’s (NOK): Since the iPhone was unveiled on January 9th this year, shares of AAPL went up from $85 to over $120. This has increased AAPL market cap in $34 billion. That means investors are valuing the iPhone business in $34 billion. That’s a lot of iPhones! But AAPL is expecting to sell only 10 million iPhones by the end of 2008. Compare this to Nokia (NOK), who is expected to sell 550 million phones in the same period, and has a $108 billion market cap. So NOK sells 55 phones for every iPhone. Yet its market cap is only worth 3 times as AAPL’s iPhone business. This doesn’t make sense in my book. So what do you think? Should we short APPL and bet against Steve Jobs? (I never thought I would say that!) http://www.manuelbackus.com/2007/06/wanna_bet_against_steve_jobs_a.html Yesterday, I came across an article in the WSJ with a surprising conclusion: AAPL may be overvalued!

To reach this conclusion, they compare AAPL’s handset business with Nokia’s (NOK):

Since the iPhone was unveiled on January 9th this year, shares of AAPL went up from $85 to over $120. This has increased AAPL market cap in $34 billion. That means investors are valuing the iPhone business in $34 billion. That’s a lot of iPhones! But AAPL is expecting to sell only 10 million iPhones by the end of 2008.

Compare this to Nokia (NOK), who is expected to sell 550 million phones in the same period, and has a $108 billion market cap.

So NOK sells 55 phones for every iPhone. Yet its market cap is only worth 3 times as AAPL’s iPhone business. This doesn’t make sense in my book.

So what do you think? Should we short APPL and bet against Steve Jobs? (I never thought I would say that!)

http://www.manuelbackus.com/2007/06/wanna_bet_against_steve_jobs_a.html

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