danielosborne's  Instablog

Send Message
I am an investment professional currently working for the amazing Wall Street Bad Boys.
My company:
My blog:
  • Stock Of The Week: More Nails Being Hammered In Research In Motion’S (RIMM) Coffin? 0 comments
    Jun 1, 2012 12:43 PM | about stocks: BBRY

    Research in Motion (RIMM) was back in motion this week when it tumbled around 8% after announcing another grim business outlook. So just how grim is the situation at Research in Motion (RIMM)? Consider the following facts and figures:

    • Research in Motion (RIMM) has just announced that it's hiring a pair of investment bankers who will conduct a "strategic review" that could include the eventual sale of the company. However, the time to sell was when the iPhone and other smartphones began grabbing its market share as there is not much left to sell.
    • On Thursday, Research in Motion (RIMM) fell 0.20% to $10.33 plus the stock is down 28.8% since the start of the year, down 76.3% over the past year and down 81.3% over the past five years but its still up over 310.3% over the past 10 years - if that really matters to any investor whose been in for the long long-haul.
    • The company has warned that it will be posting an operating loss for the May quarter. Its worth noting that every single one of the 43 analysts who follow Research in Motion (RIMM) was predicting a profit for the period.
    • There are layoff rumors or more specifically there will be "significant spending reductions and headcount reductions in some areas." That could give Research in Motion (RIMM) a boost at some point if it helps them produce a profit. However, high level executives at Research in Motion (RIMM) have been walking out on their own without the need to be pushed out.
    • Most North American consumers are choosing Apple or Google over the BlackBerry while Research in Motion's (RIMM) traditional customers such as big businesses are increasingly allowing their employees to choose their own smartphones or use their personal devices.

    On the bright side of things, Research in Motion (RIMM) still has plenty of assets along with no debt and over $2 billion in cash. Moreover, Research in Motion (RIMM) still has 77 million subscribers globally and remains extremely popular in some regions such as Indonesia and parts of Latin America. However, its falling market share means that the company, short of a miracle, is probably destined to continue shrinking in relevance well into the foreseeable future.

    Nevertheless, there are probably still plenty of ways for traders to make money trading Research in Motion (RIMM) on its ups and downs (just don't plan on being a buy and hold investor with its share!). Hence, keep an eye on our NextCandle.com stock forecasts for any sign of a strong probability of a direction movement for Research in Motion (RIMM) and plan to trade accordingly.


    Stocks: BBRY
Back To danielosborne's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.