I was just looking at the chart of Research In Motion Limited (TSX/RIM, NASDAQ/RIMM). We first noticed the company in November 1998 when it was trading at a price-adjusted CDN$1.00 (adjustments for stock splits and stock dividends). The stock has been on fire and riding the wave of its hugely popular “BlackBerry” PDA. After some market concerns regarding its patent infringement case with NTP, RIMM has been trending steadily higher in what is a perfect example of a rising trend.
If you bought RIMM in November 1998 when we recommended it, your investment would be up a whopping 11,457% and an initial investment of $1,000 would now be worth about $119,810. An investment of $8,347 would now be worth $1.0 million! Just think of that $20,000 car you bought in 1998. If you bought RIMM stock, you would be worth over $2.0 million and could easily buy a Ferrari. The point is that while finding super stocks is not easy, they do occur, as this case illustrates. The keys to finding a good stock are patience and recognizing the fact that the company has an exceptional product and technology unmatched by all rivals.
The outlook looks even more promising for RIMM, as it sets out to expand its reach into the massive market in China, where there are close to 500 million users. The company recently received clearance to market its BlackBerry in China. Subsequent to this, RIMM and France-based Alcatel-Lucent announced a strategic agreement to sell the “8700 BlackBerry” smart phone in some Chinese markets by the end of the year. With close to 500 million cell phone users in China and a strong desire for new technologies, China is ripe for the picking with the growth potential enormous for RIMM. The BlackBerry is already sold in India and Japan.
The bottom line is that Research In Motion is hot and delivering. The company is innovative and trying to align itself with major companies that can drive sales of the BlackBerry and generate other revenue streams, including a recent deal with Facebook and rumors of one with Google, Inc. (NASDAQA/GOOG). Enjoy the ride!