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VP, Mobile Interactive Solutions Division 3M MBA - Finance University of Minnesota Investor Relations Director, 3M 2004-2006
  • RIMM & SMT comparison - each down almost exactly 75% since SMT IPO July 2010 0 comments
    Dec 17, 2011 4:24 PM | about stocks: SMT, BBRY
    Pretty amazing that 2 important Canadian tech companies..(RIMM & SMT) have both lost almost precisely 75% of their value since Smart's IPO.

    Both Canadians were great at exploiting an early use case with premium hardware in major segments (Education, Enterprise)...building massive profitable growth businesses.

    But once forces like aapl, open source, generic hardware took over, software became the main differentiator. Content and user experience was either better on competing platforms (RIMM) or cheaper on another hardware platform (SMT - cheap interactivity, generic displays).  In RIMM's case they are losing share due to better hardware and better user-experience with iphone and android, and even losing their software edge with Enterprise security who no longer calls the shots.. users do now and they want iPhone and android.

    In SMTs case it seems tougher to capture big hardware profits on interactive whiteboards possibly due to tight budgets and diminished differentiation, seems like lower benefit/cost on interactive whiteboards than in the past, pressuring pricing.

    Which has a better shot to turn it around RIMM or SMT?

    Hard to say on RIMM since that's such a fickle industry.  I'd say SMT actually has a pretty good shot since they are making good moves to scale the availability of their software and are focused on education  - a narrower market where teachers still have some say and their brand is still very strong...government funding will be tough to get in the future, but people will always spend money on kids (I hope!)
    Stocks: SMT, BBRY
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