Research in Motion (RIMM) was boasting not too long ago actually in June this year a market capitalization of $83 billion but has dropped considerably in the last 4 months down to $32.5 billion. According to analysts RIM is trading at 10-15 x 2010 earnings but strangely only a week ago the same analysts predicted that it would trade at 30-35 x 2010 earnings, so your guess is as good as mine as to which equity analysts you wish to believe.

With RIM announcing three great new handsets the BlackBerry Storm, Bold and the BlackBerry Pearl Flip, distributing all over the world at this very moment, one thing is for sure, Research in Motion is and will continue to be a very profitable company, there is no debt and plenty of cash swirling around to make RIM vulnerable to offers.

This brings us on to the possible takeover bids, if the deals good enough from companies such as Microsoft (MSFT) they may not be able to resist. We believe that Microsoft are right up there for a takeover bid, the computing giant has never been shy to move in at force at the right time offering the right package to expand its empire, Microsoft did it with Yahoo and Zune although that didn’t really get off the ground. Microsoft would have no problems affording a deal with RIM question is will Research in Motion sell?

Source: SeekingAlpha