OT: RIM Is Not Doing Well

[Gobias Industries]

RBC....reported 1.5 billion revenue last quarter and their stock fell 5% the next day.

Obviously nothing as dramatic as RIM...but the street is over-reactionary for the most part.

The street is definitely over-reactionary, but the Royal is a blue chip stock, which oustide of a wholesale banking concern last September has come as close to mirroring the TSX composite as it can get. ..

There are going to be speculators, especially on stocks as big as the Royal, but a 60% selloff, with massive volumes like RIM would be indicative of long-term investors jumping ship...

The Royal was actually the stock I was thinking of when I said, stocks can fall upto 10% when earnings aren't met...

 

[New User Name]

http://www.thestar.com/business/com...2364--rim-shares-rise-on-takeover-rumour?bn=1

 

[Matzel]

Companies that are doing quite well generally don't see their stock drop almost sixty-percent in three months...

Zing.

 

[MayDay]

Another article that RIM is doomed and likely to be bought by another company (likely Microsoft).

http://www.mobilecrunch.com/2011/06/22/rim-youre-done-here/

 

[SuperDave21]

http://www.thestar.com/business/com...2364--rim-shares-rise-on-takeover-rumour?bn=1

A couple of interesting quotes...

"Paul Taylor, chief investment officer at BMO Harris Private Banking in Toronto, said bargain hunting investors may have rediscovered RIM after the stock was “vastly oversold†and emerged as a favorite target of short sellers.

He also said any takeover of RIM would likely involve a hostile pursuit, given that the company’s co-chief executives say they are more committed than ever to turning RIM around as a free-standing entity"

In a nutshell, the market is betting that the company will continue to fall as evidenced by investors shorting the stock. It also looks like RIM's executives aren't willing to go quietly, which could lead to more turmoil.

"RIM blamed product release delays partly on difficulties in obtaining carrier certification for its new phones."

Not a good sign. That means either they are trying to push through inferior products, as mentioned in another article this week, or carriers don't see Blackberries as competitive products compared to those of Apple and Google (Android).

RIM seems like a toxic stock to me right now. I wouldn't touch it with a 30 foot pole...

 

[MayDay]

A couple of interesting quotes...
He also said any takeover of RIM would likely involve a hostile pursuit, given that the company’s co-chief executives say they are more committed than ever to turning RIM around as a free-standing entity"

In a nutshell, the market is betting that the company will continue to fall as evidenced by investors shorting the stock. It also looks like RIM's executives aren't willing to go quietly, which could lead to more turmoil.

I hate to keep making this comparison, but it's worth noting that Palm's executives all stuck to the company line about being committed to go forward as an free-standing business right up until the very day they announced they were being bought by HP.

 

[Jarnberg]

Last year, Lazaridis was ranked the world’s 651st richest man by Forbes with a net worth of $1.9 billion, and Balsillie was No. 692 on the list with a net worth of $1.8 billion. Fast forward to today, and neither man can call himself a billionaire any longer. The cheifs’ stake in the company is still worth more than $1 billion combined, but separately, their net worths are now just roughly $800 million a piece.

http://www.bgr.com/2011/06/23/rim-chiefs-no-longer-billionaires-thanks-to-plummeting-rim-stock/

 

[Melrose Munch]

http://www.washingtonpost.com/busin...retty-negative/2011/06/23/AGFfQOhH_video.html

 

[Melrose Munch]

http://www.ctv.ca/generic/generated/static/business/article2072777.html

 

[Gnashville]

This whole thread puts a big grin on my face. Given Baldy's lies, and his underhanded and crooked dealing with the NHL and my team esp. It's good to see the chickens come home to roost. Hope he declares bankruptcy and he and Boots can also share a cell someday!!! Serves him right IMO.

 

[Fugu]

This whole thread puts a big grin on my face. Given Baldy's lies, and his underhanded and crooked dealing with the NHL and my team esp. It's good to see the chickens come home to roost. Hope he declares bankruptcy and he and Boots can also share a cell someday!!! Serves him right IMO.

Why would he spend time in a cell? He hasn't broken the law.

 

[BrianL*]

Having just had another new Blackberry forced on me by my employer, each increasingly more annoying than the previous model, all I can say is Die RIM Die! Maybe then they'll issue me an iPhone.

 

[Nashvols]

Why would he spend time in a cell? He hasn't broken the law.

Yet...

 

[Ernie]

RIM is done. I read an anecdote that management didn't believe that Apple actually was going to deliver the iPhone when it came out because they didn't think it was technically possible.

Since then, they've been behind the 8-ball and have never caught up. They're getting eaten right now - the only reason their stock price isn't at zero is because of their still loyal user base. But they're not converting any new users, and are starting to see their own slowly melt away.

Won't be a quick death, but a long, flailing one. Until someone steps in and mercifully picks up the scraps.

 

[Northern Dancer]

Why would he spend time in a cell? He hasn't broken the law.

Well he did at one time but that has been dealt with.

http://www.cbc.ca/news/business/story/2009/02/05/oscrimapproval.html

 

[Bill_Crosby*]

You'd have to be bananas to buy RIM even now. Long way to fall yet. The only people I see with BBs these days are government employees and politicians, who are always a couple of years behind the trends. Just about every techie and IT guy I know went to a droid last year.

I work for the government and it's still BB's for us.

 

[Confucius]

I work for the government and it's still BB's for us.

It's still the most secure phone. Secure email, or toy features, oh what to choose?

 

[Fourier]

It's still the most secure phone. Secure email, or toy features, oh what to choose?

And this may be their one ace in the whole. Especially after purchasing Certicom another company with roots in Waterloo. They now have full ownership of the best eliptic curve crytogrphy encryption technology in the world with customers such as the NSA and the Canadian. The company is also involved with advanced metering for utilities and could be a player in the evelution of North America's electrical grid.

On the consummer side if phones evolve from play things into a means of doing electronic commerce, this might be a significant factor.

 

[Tim Calhoun]

RIM will be fine in the longterm, as long as they change their business model. They need to invest heavily into R&D and stop competing with firms they have no business competing against.

 

[SuperDave21]

It's still the most secure phone. Secure email, or toy features, oh what to choose?

I completely disagree. With more and more firms moving to Google, I would trust their enterprise services, and security, over RIM's any day of the week. RIM is not moving it's enterprise services to the cloud (as far as I'm aware) like the rest of the IT world, so their proprietary hardware and software will be at increased risk for security threats. Google's infrastructure is so far ahead of RIM that it's not even funny.

 

[SuperDave21]

RIM will be fine in the longterm, as long as they change their business model. They need to invest heavily into R&D and stop competing with firms they have no business competing against.

Change their business model to what exactly? Stop sucking so hard as a company? It doesn't work like that. These days companies need to be on the edge of innovation and cutting edge technology. Both of those terms do not describe RIM, or it's management. Have you seen, or played with, an Android or iOS device recently? Have you tried out the Motorola Xoom tablet running Android 3.0 (Honeycomb)? I implore you do so because then you'll see why the BB Playbook, and the rest of RIM's hardware/software, is a complete joke. RIM is dying, and people need to stop trying to convince themselves otherwise.

The last commercial I saw for RIM was touting the "new" technology that comes with Blackberries: The BB Messenger. They had a bunch of young people in a club exchanging IMs and proclaiming, "It's so easy and cool!" Yea it was cool about 10 years ago. Every smart phone has an IM client (most likely AIM) and if you have an Android device, Google Talk is the way to go. I just upgraded to an HTC Thunderbolt with 4G and it's mind blowing in terms of speed. 15MB up, 5-7MB down? Are you kidding me? Where's RIM with 4G? I bet they don't even know 3G is yet...

 

[DoyleG]

It's still the most secure phone. Secure email, or toy features, oh what to choose?

Most of the non-essential features on government-issued BBs get disabled.

 

[Ciao]

Yes, I understand RIM only made a profit of $934-million for the fourth quarter of fiscal 2010-11, up from $700-million a year earlier.

A little more than you or I made, mind you. I won't be worrying too much about RIM, even though I'm sure it is buried there somewhere in my paltry stock portfolio.

 

[Killion]

RIM is having its AGM with shareholders in Waterloo this evening, It will be interesting to see if Balsillie & Lazaridis can hang on, hang-in with diminished roles, wind up being asked to resign or whatever......

 

[Killion]

According to post AGM reports & comments, "no change in direction or leadership required; its all just overblown media hype". RIM-T has fallen from $147+ to todays closing of about $27; Android & Apple eating Blackberrys lunch, American investors bailing en masse'. Sure, theyve' made in-roads in North Africa & the Middle East, but the main markets here in North America & Europe, the UK. This is serious stuff. If they go down, they'll take a ton of little guys across Canada down with them. Beyond making a few changes at the Board level; its status quo.