Goldman Sachs Suggests Selling Puts on Research In Motion

Goldman Sachs is out with a research note this morning, where it suggests that traders Sell Puts on Research In Motion RIMM ahead of earnings. While trends are challenging, as BlackBerry 7 adoption is disappointing, Goldman's analysts rate RIMM as Neutral, noting that they believe the valuation (3.5X P/E) now reflects the poor fundamentals. The analysts' $18 12-mth price target is based on a sum of the parts methodology breaks down to 50% of the services business and 35% from RIM's Intellectual Property (IP) portfolio, with the remainder from RIMM's cash balance. The analysts suggest selling the December $15 put for $0.31. Research In Motion Limited is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. RIM provides platforms and solutions for access to information, including e-mail, voice, instant messaging, short message service, Internet and intranet-based applications and browsing.