By: Martin Tzakov, Moury Paul, Kamran Hamidi

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• By Martin Tzakov, Moury Paul, Kamran Hamidi

Research in Motion TSERIM
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Research In Motion

• Manufacturer of wireless devices, best known as
  the maker of BlackBerry
• Based in Waterloo, ON
• Subscriber base of 32 million BlackBerries
• 81 of total revenues come from wireless devices

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Rationale for Buying

• Drop in past week has been due to missed
  expectations
• EPS lower due to one-time charge
• Q2 EPS 0.83 (1.03 not including one-time
  charge) vs. 1.00 consensus
• Penetrating the mid-range segment of the smart
  phone market
• Aggressive marketing strategy for holiday season

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Financial Data
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In The News

• Analyst recommendations have gone up
• unique opportunity in a crowded smart-phone
  market due to its differentiated offering,
  intelligent demographic segmentation, rising
  brand awareness and a carrier friendly
  technology.

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Competitor Comparison
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Risks

• Market does not react to holiday spending season
• Decreased sales due to slower retail sales
• Introduction of innovative Smartphone's from
  competitors

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The Bulls and Bears

• Cons
• Market may continue to act negatively of
  performance is not improved
• Weak retail figures for holiday may not boost
  sales
• Entrance of other Smartphone manufacturers into
  RIMs turf

• Pros
• Stock has pulled back to a support level and its
  P/E is below competitors
• Expanding product line will appeal to a broader
  range of consumers this holiday season
• Stronger carrier relationships

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Recommended Buy Hold

• Buy
• At or below 70.00
• Stop
• 60.00 (Any point lower voids support region)
• Target
• 90-100
• Expected Return
• 25 30