So Research In Motion (RIMM), $82/share, split its shares 3-for-1 today. At is high today, its stock had rallied another $4+/share (post-split), the equivalent of a $12+ point rally at pre-split levels. Didn’t anyone learn from their experience of 1999 and 2000 that stock splits are nothing more than a paper shuffle? This does not mean that the company will sell even one more Blackberry than it would have otherwise. Its market-cap is now roughly $43-billion on Revenues of $3.037-billion annually (trailing 12-months). Shares now trade at 14-times Revenues!!! And keep in mind, that if you were to subtract the sequential growth in its Accounts Receivables last quarter, Research In Motion saw zero sequential Revenue growth. Research In Motion, in my opinion, is running out of gimmicks (stock splits, balance sheet shell games) at their disposal that they’ve substituted for the illusion of being a long-term growth story.
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