Analyst Says RIMM Selloff is Buying Opportunity
The market selloff after Research in Motion’sdisappointing guidance presents an excellent buying opportunity, one analyst told Mark Haines and Erin Burnett on “Squawk on the Street.”
Shares of RIM are down Thursday, mainly because of the BlackBerry maker’s “lack of earnings leverage,” said Rob Sanderson, media and communications analyst with American Technology Research.
“But all in, things are pretty good here still,” he said. “They’re investing more in growth, just starting to crack open the consumer opportunity, and we do have some one time events, a bit of a higher tax rate that is pinching some of the earnings outlook.”
But Sanderson says RIM’s continued momentum makes it a good buy, despite the SEC’s formal stock option investigation and upcoming competition from Apple’s iPhone.
They may compete for consumers, Sanderson said, but the actual devices and prices are different. The iPhone is a media device that does messaging and will be priced four or five times more than the BlackBerry, which is a messaging device that does some media, he said.