GMP Research says: buy the dip on RIM

I’m a follower of what Michael Urlocker has to say, so when the GMP Securities research analyst shouts “Buy The Dip: RIM Sees Big Growth in Europe and from New Fall Models“, one must pay attention:

“• Overview: In meetings with RIM management yesterday, the executives were highly confident of a substantial growth phase ahead. Competitive pressures are not new and demand has not slowed due to macroeconomic issues, they said

• Positives: RIM said it expects a strong second half in 2008 fuelled by new BlackBerry models, new promotional campaigns by carriers especially in Europe and by rapidly expanding market demand

• Points to Watch: We expect a series of new product launches (Bold, flip phone, touch screen, possibly others) and carrier promotions over the next 5 months

• Investor Question: We think the recent 25% decline in RIM shares is unwarranted. For some, the key question would seem to be, “Does Apple’s new iPhone hurt RIM’s business?” We think not in any meaningful or lasting way. As a result, we think the market has offered a great buying opportunity for a proven growth company

• Impact: We make no changes to our bullish view on RIM. In following this management team for 10 years, we have learned that high ROE, high earnings growth, high cash generation and strong management confidence are positive indicators not to be ignored

Target: $190”

MRM
(disclosure – I own RIM)