Troubling Times For Research in Motion (RIMM)

Shares of Research in Motion RIMM are under pressure once again on Monday. The stock has fallen more than 2% despite a very strong broad market tape. RIMM has been a slow motion train wreck for sometime now, as the company appears to be overmatched by the likes of Apple AAPL and Google GOOD in the smartphone and tablet space. The shares have lost more than 29% in just the last 3 months, and are down around 18% over the last month after the company revised its first quarter guidance downward. Somewhat interestingly, however, is the fact that RIMM management told investors that it still believes it can hit its full year earnings targets, despite the very downbeat fiscal Q1 guidance. Quite frankly, their projections appear to be overly optimistic, and possibly even fanciful. The market appears to be agreeing with this notion and is treating the stock with clear-cut skepticism. RIMM is extremely cheap on a valuation basis, which underscores just how concerned investors are about the company's model going forward. The stock trades at a trailing P/E of 7.07, a forward P/E of 6.38 and a PEG ratio of 0.46. This is almost laughably cheap. It is so cheap in fact, that value oriented technology investors are likely hard pressed to not take a look. The fact remains, however, that the stock has really been a black hole for sometime, and the most recent disappointing news is hard to ignore. That being said, the shares are really priced for Armageddon at this point, so any good news going forward would likely richly reward the value hunters.