Since reporting earning on March 24th, RIMM stock has done nothing, but decline. The stock has retraced 18% from the high of March 24th. The company is best known for there blackberry phones. But now they are also entering the tablet industry. Recent reviews of the Playbook have been unkind to say the least. One of the problems noted with the Playbook is that emails can only be received when connected to a blackberry device. Not the type of reviews you want out when your biggest competition is Apple. Apple has cornered both the tablet and smart phone market with the ipad and iphone. Surely, RIMM is losing market share to Apple and other smart phone makers. Shaw Wu an analyst with Sterne Agee wrote a note to investors saying, “We continue to believe [RIM’s fiscal 2012] guidance of $7.50 in EPS will likely prove aggressive,” and is looking at estimate “substantially below $6.75” a share. Currently RIMM trades at 8.5x P/E. If there earnings per share come in at $5.00 a share which would be a huge miss for the company.
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