Cramer's Stop Trading! The Research in Motion Killer (11/5/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Thursday November 5.

Goldman Sachs (GS), Apple (APPL), Motorola (MOT), Research in Motion (RIMM),

"The game is over" for the hedge fund consulting business as 14 more people were charged for insider trading. Consultants often had tight relationships with company executives and could easily find ways of getting information without breaching SEC rules, but Cramer thinks such tactics are finished.

Goldman Sachs (GS) deserves its status as a bank holding company in spite of the bank's involvement in trading. Cramer says it is a "question of leverage." He doesn't think Goldman is guilty of abuse and praises the company for being "very open."

Motorola's (MOT) Droid is more likely to be a "Research in Motion (RIMM) killer than an Apple (AAPL) killer," remarked Cramer who criticized RIM for buying back stock rather than finding new ways to grow the company.

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Comments

[mollytjm:]

yes, i agree. RIM will suffer from competition, not Apple.. the same is true for Palm. And buying back stock instead of putting that $$$ into R&D is just foolish. The name of the game in tech is innovation...and more innovation...fast and good. That takes money and the determination to do it. Apple has it for sure, which is why it keeps growing market share. Taking a long time to design something is ok when it's sheets...but not when it's tech.

Nov 06 09:33 AM

[valueguyyy:]

The Company has increased its R&D and advertising expenses and still maintains its high margins. Reviewing the stock valuation, the Company appears to be trading cheap compared to its overall performance from both a revenue, earnings, operating income, and BV/share growth perspective. There is a limit to the amount you can spend in R&D and then you just get wasteful, I have a feeling that's what management probably thinks. Anyways, let RIMM fall, just makes it even cheaper to buy up.


On Nov 06 09:33 AM mollytjm wrote:

> yes, i agree. RIM will suffer from competition, not Apple.. the
> same is true for Palm. And buying back stock instead of putting
> that $$$ into R&D is just foolish. The name of the game in tech
> is innovation...and more innovation...fast and good. That takes
> money and the determination to do it. Apple has it for sure, which
> is why it keeps growing market share. Taking a long time to design
> something is ok when it's sheets...but not when it's tech.

Nov 19 06:55 PM