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Research in Motion (RIMM +4.1%) pops going into the close on reports that the company is in...

Research in Motion (RIMM +4.1%) pops going into the close on reports that the company is in discussions to hire investment bankers to examine strategic options.
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Comments (13)
  • Loon-a-tick
    , contributor
    Comments (1700) | Send Message
     
    Oh that means Appel must have surged today? OOOPPS
    16 Apr 2012, 08:00 PM Reply Like
  • Rummeljordan
    , contributor
    Comments (477) | Send Message
     
    YOU CAN DO IT!
    16 Apr 2012, 08:10 PM Reply Like
  • smithatude
    , contributor
    Comments (134) | Send Message
     
    Wow! RIMM is thinking about hiring a bank to send their stock up at 3:59....errr I mean tell them what to do. I wonder if they are thinking of hiring lawyers to fend off creditors, in an approach to bankruptcy. They dont have money to hire bankers, they can't even pay their own employees that they let go.

     

    Last time I checked, bankers werent experts on outdated telephones. But their attorneys are helpful in securing a credit line to assist through reorganization.

     

    This typical RIMM move always happens during the week options will expire. Thats why I'm short RIMM, and short a couple of RIMM puts, to buy back when these monumental announcements, like thinking about hiring a bank to sell telephones comes out.

     

    RIM really has to do better than this. It was one thing when they leaked stories about companies interested in buying RIM, or Jaguar talking up the book value. Hiring bankers? Thats funny. Are they going to pay the bankers in RIMM stock? Or their "cash".
    16 Apr 2012, 08:18 PM Reply Like
  • billddrummer
    , contributor
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    Figure they'll pay in used telephones.
    16 Apr 2012, 11:17 PM Reply Like
  • Ananthan Thangavel
    , contributor
    Comments (836) | Send Message
     
    You should really try to do 10 seconds of research before making a comment. It is not financially possible for a company with no debt and over $3 billion in positive net-net working capital to go bankrupt. And yes, they have $1.5 billion in pure cash to "pay bankers."
    16 Apr 2012, 11:44 PM Reply Like
  • NullDelta
    , contributor
    Comments (48) | Send Message
     
    "Last time I checked, bankers werent experts on outdated telephones. But their attorneys are helpful in securing a credit line to assist through reorganization...hiring a bank to sell telephones"

     

    lololol

     

    I can't wait until May to start trading with real money, lotta people that follow the herds and are clueless deserve to have their money taken

     

    Do you know what investment bankers do? Have you looked at IPO's other than the media-ized ones?

     

    Why would they need a credit line? What about their "cash"? Last time it was reported around 2B, but you know what, I'll knock off 1B, even then, don't think they need loans anytime soon.

     

    These comments, I don't understand, how someone can be so...
    17 Apr 2012, 08:14 AM Reply Like
  • steveid
    , contributor
    Comments (27) | Send Message
     
    I was thinking the same thing. RIMM isn't going bankrupt. Zero debt and free cash flow. You could argue if they remain on the current path they would eventually be in trouble but it would take a long time.
    17 Apr 2012, 12:05 AM Reply Like
  • Yasch22
    , contributor
    Comments (400) | Send Message
     
    Note that the Bloomberg piece suggested that the main purpose of RIM's purported hiring of banking advisers is either for a licensing deal for its software (e.g., BBM or QNX) or for an acquisition that RIM plans to make. Given the fact that RIM has bought something like six companies in the past 3 years, Bloomberg's speculation is on fairly secure ground. Also, Ananthan and steveid, I couldn't agree with you more! Sales of handsets could go down as low as 9 or 10 million for fiscal 2013 and RIM would still make $2+ per share.
    17 Apr 2012, 02:38 AM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1700) | Send Message
     
    They say they are going to sell a few assets, they are going to put a fair value on the company including cash and assets, and that they may licence other phones to use their secure system so that corporations and governments can use any phone (Monkey gadget ) they want and get secure features suitable in high security situations. That means not like Face book.
    My advice is to sell a share of Apple today and take a risk that may pay another 5% today.
    17 Apr 2012, 06:55 AM Reply Like
  • Gutone
    , contributor
    Comments (438) | Send Message
     
    RIM's free cash flow was negative last year. It has been piling up inventory while sales have been declining. Those who think RIM has cash, think again. That cash will be burnt out within a year.
    This is my opinion:
    http://bit.ly/IiHcTg

     

    This is a piece of useful news: "On many days we're now getting fewer BB users than Windows Phone 7 users, and we don't even have a Windows Phone 7 app!"
    http://cnnmon.ie/HPSnmk
    17 Apr 2012, 08:50 AM Reply Like
  • Yasch22
    , contributor
    Comments (400) | Send Message
     
    How does the addition of $600 million to cash reserves amount to negative cash flow? A paper/GAAP loss on a goodwill impairment doesn't mean the company in actual fact lost money, or is losing money. Even the build-up of inventory means RIM can sell at cost, get a tax break by writing off the difference between the price it got and the price it asked for, and then make more money from the subscription fees. Also, despite the loss of "YouMail," RIM's App World is adding new developers and apps hand over fist, from 30K in July/11 to 60K in December, and presently at 75K. Downloads increased from 3 million per day in July/11 to 6 million/day by Dec./11. The BB10's QNX platform using The Astonishing Tribe's Cascades software will attract new developers by the droves. See http://bit.ly/IMsBSe
    You know, instead of just cherrypicking the negative articles on RIM's ecosystem, you could once in awhile at least pretend to strike a "fair and balanced" position.
    17 Apr 2012, 02:47 PM Reply Like
  • Gutone
    , contributor
    Comments (438) | Send Message
     
    I find it a bit funny anybody can still have hope in RIM. RIM will be lucky if a sucker buys it, which is what most bag holders are wishing for.

     

    BB10 is non starter now that big three have all piled on. And no, buildup of inventory does not mean RIM can sell at cost.

     

    We should come back to re-visit whatever remains of RIM in a year.
    17 Apr 2012, 02:53 PM Reply Like
  • smithatude
    , contributor
    Comments (134) | Send Message
     
    The RIMM Bloomberg story is typical RIMM. Stock can't go up, everyone knows its going to single digits, maybe at that point it will be sold for a fraction of it's market cap.

     

    Today's action is indicative of RIMM. No one wants it, no matter how great the "risk appetite" is.

     

    They have to license there products asap to get revenue. They have no engineers, BB10 either coming out on time, or coming out on time and anyone buying it is a joke.

     

    If the BB10 phone comes out on time, and is truly better than the ipnone, or any telephone, no one will buy it.

     

    I'll be happy to stand corrected if I'm wrong, but RIMM's hired bankers dont say much, the market reflected as much.

     

    RIMM is also lacking in SEC filings in my opinion. Failure to file these means they are in violation of SEC regulations, and should be kicked out of US exchanges, or all of the rumors, the RIMM wont comment on are a bunch of nonsense promoted by Jaguar, and keep in mind the twins hold the most stock, so in their unemployment, they have time to start rumors.

     

    They don't however, have the money to buy a hockey team any more. While that failed indeavor was going on, the iphone was taking everything away from RIM.

     

    Did the twins buy the 50 million in RIM stock they promised when they got fired? I'm curious about that. Did the twins hedge their extremely large position in RIM? They should have.
    17 Apr 2012, 09:31 PM Reply Like
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