Friday, September 17, 2010

RIMM -- I'm buying

Financially, Research in Motion is doing extremely well.  Yesterday after the close it announced very good numbers across the board.  Maker of the Blackberry, it is being challenged by competitors in the mobile smart phone business so the market has feared its fast growth would slow down so its stock price has been declining for months.  However, there appears to be no sign of that in the financials. 

I am buying RIMM today at $47.40 with the expectation of making it a long-term investment.  On the other hand, if the stock moves much against me here I'm going to get out, watch it, and look for another good place to buy it.  My stop will be $43.  Prices could easily go to $75 in 1-2 years.  Max. Risk = $4.40 and Potential Profit = about $27.50 or Reward to Risk ratio of 6:1.