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The Latest Comment on RIMM by Prem Watsa

May 31, 2012 | About:
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This is the latest comment from Prem Watsa on Research-in-Motion (RIMM) at Fairfax Financial Dinner.

Prem reviewed the firm (Research-in-Motion) calling it a great Canadian success, noting that it remains #1 in many markets, and observing that is has $2.1 billion in cash and no debt. It has, however, fallen by about 90% which Prem correctly notes makes people think that it's doomed while its competitor Apple seems destined to shoot to the moon. However, as value investors know, nothing grows to the sky [and even the meanest dog can have his day].

Prem is bullish on BB10, the firm has terrific technology, and he notes that Mike Lazaridis is a genius. He also likes Thorsten Heins and remains happy to hold RIM's shares.

The cell phone market is 6 billion units so there is lots of room for competitors. 1.2 billion units are sold each year.

Read the complete notes at Fairfax Financial Dinner.


Rating: 3.7/5 (31 votes)

Comments

stevenramsey
Stevenramsey - 2 years ago


Great stuff! Thanks for posting this.

As for Bank of Ireland, my question is, if the EU goes down, what are the ramifications for Bank of Ireland? I can't think of an example of how a macro/currency default event affects an individual business entity.

Any historical examples come to mind....
batbeer2
Batbeer2 premium member - 2 years ago
>> how a macro/currency default event affects an individual business entity.

What is a macro/currency default event ?
Moneymaker5o1
Moneymaker5o1 - 2 years ago


Prem Watsa, a "value investor" that makes the majority of his gains through large macro bets
forexnutca
Forexnutca - 2 years ago
I was at the dinner. Both Francis Chou and Prem showed conviction in IRE and RIMM.

Richie Boucher was also present and pretty humble on the state of the bank, but was very optimistic in the future.....very funny fella.

vgm
Vgm - 2 years ago
Thanks for posting the Fairfax dinner report! Fascinating snippets.

Stevenramsey,

Worries about Europe are front and center these days. But I think even the most pessimistic observers do not foresee the EU going down. More likely, the EU will do all it takes to keep itself intact, including Greece. Germany et al would suffer if even Greece left.

Assuming the EU holds together, Ireland and Bank of Ireland are arguably in strong condition going forward.

I've always found it compelling that Prem Watsa and Wilbur Ross, two of the most cautious and insightful investors on the planet, are together the mainspring behind the rescue of BoI. BoI is Ireland's only solvent bank.

They paid 10 Euro cents per share which was 35% of what Ross calls "cleaned-up book value". He called it "a steal" and says he expects it to trade above book when the dust settles around Europe. Presumably book will grow over time. BoI trades today below their cost. Needless to say, it's volatile!

Ross has repeatedly stated his bullish case for Ireland. This is a link to a recent interview:

http://video.cnbc.com/gallery/?video=3000090443&__source=yahoo%7Cheadline%7Cquote%7Cvideo%7C&par=yahoo

Disclosure: long Bank of Ireland
coda
Coda - 2 years ago
The reason why he invested in Rim is really something I can't explain...

Lazaridis is a genius and Steve Jobs was a genius as well in 1990s...

Rim is a company in a difficult competitive market and who saved way too much on R&D...

He should say sorry to his shareholders for this gamble instead of making stupid statements...

Rim has 2 billions in cash but he invested at a far higher price when was far away from being valued on a liquidation basis....

Was just a poor choice, and for the amount of money he bet I'd say a terrible mistake

peter_burke_ceo
Peter_burke_ceo - 2 years ago
but notice he isn't buying any more. that says it all for me. in fact are any insiders buying this thing at $7 and change?
boutch2fr
Boutch2fr - 2 years ago
buying again!!!

between 7 and 8$ at the beginning of July...

pfffiuu, THAT is contrarian...

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