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Mentioned during Research In Motion's depressing FQ1 call: 1) RIM says it will focus on...

Mentioned during Research In Motion's depressing FQ1 call: 1) RIM says it will focus on developing fewer devices (logical, given the impact of massive job cuts on R&D). 2) RIM all but admits it will soon begin burning cash. 3) RIM says it's in a "good position on patents." That, together with the hiring of Verizon's General Counsel to be the company's new legal chief, could indicate RIM is looking for ways to monetize its patent portfolio. RIMM -15.1% AH.
Comments (17)
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    This is a falling knife. A "good position on patents" means what?

     

    When that comes up in an earnings call as a positive you know you are screwed.

     

    Looks like the next Palm.
    28 Jun 2012, 06:37 PM Reply Like
  • LoganSix
    , contributor
    Comments (292) | Send Message
     
    Well, except for having $2+ billion on hand and ZERO debt.... and already changing an ineffective management.... and in the process of overhauling the OS.... and doing new out reach to get developers on board.... but yeah, just like Palm.
    29 Jun 2012, 08:04 AM Reply Like
  • pierrebonbon
    , contributor
    Comments (92) | Send Message
     
    And postponing for at least six months launch of new OS... I guess they'll sell blackberries or maybe even peanuts in the time being.
    29 Jun 2012, 09:49 AM Reply Like
  • LoganSix
    , contributor
    Comments (292) | Send Message
     
    Well, with the cuts to save $1 billion in operation costs, they could just live off of the 77 million subscribers and not the phone sales.

     

    I mean, it is not like those people will break their cell contracts and get a new phone, just because they have to wait a few more months for the newest gadget.
    29 Jun 2012, 10:00 AM Reply Like
  • pierrebonbon
    , contributor
    Comments (92) | Send Message
     
    That could be true counting on the unlikely possibility that they did manage to put out BB10 early 2013, more so now that they'll be short of 5k employees. Plus, I don't see how does it sound to you a company whose main business is selling phones living from their savings rather than... phone sales. To me sounds pretty terrible, six months is a lot of time.
    29 Jun 2012, 10:06 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    New developers want to work on RIM? Changing of ineffective management? They stayed in-house and promoted one of the Lieutenants of the ineffective leaders and kicked one of the ineffective leaders up to the board.

     

    Overhauling the OS? Delays only raise the capital investment and the expense level of the new devices which reduces margins.

     

    The $2 Billion is nice and gives them some oxygen but they might need to fire everyone and just make it an asset sale if they cannot build and sell anything. That is they cannot compete.
    29 Jun 2012, 10:09 AM Reply Like
  • scott trader
    , contributor
    Comments (4638) | Send Message
     
    and what if you are wrong....... many will jump ship...... and are in the refresh cycle of their contracts ....... slip sliding away
    29 Jun 2012, 10:48 AM Reply Like
  • LoganSix
    , contributor
    Comments (292) | Send Message
     
    @pierrebonbon You do know that they make money on people who pay to be on their network? Correct? You know what a subscriber is, right?

     

    Most of the developers they let go weren't switching over to QNX. What is the point of holding onto a bunch of developers making code for the OS that you are going away from?

     

    @TomasViewPoint they just did a survey showing that the average app in the BlackBerry store makes more than the average app in iOS store, both blow out the Android store. Eventually developers will tire of Google's method of payment and want to be paid for their product and not the hopes of possible ad click revenue.
    29 Jun 2012, 02:14 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    You're playing the apologist? Is BB10 not going to be late? I was warning you longs about their past record for releases, and only got denials...being more objective might have saved people from some big losses...

     

    So what is your position? I just dumped my short position, are you backing up the truck?
    29 Jun 2012, 02:31 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    So they let go of a bunch of developers that were not adding any value apparently? Why did they even have them on staff?

     

    Why would a developer make an app for RIM if they cannot sell phones and may be going out of business? Waste of time.
    29 Jun 2012, 04:08 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    I think this situation will worsen over time, even from this low point. RIM has four legs of the stool holding things up: their cash pile, their subscriber base, their patents, and their BB lines. The profits from phones have taken a dive, and it seems that the cash pile will likely begin deteriorating.

     

    People were placing their hopes on BB10 to be the turnaround that they have hoped for... that leg just got knocked out from under them. Not only will they miss the critical holiday season and will fall behind their competition more, but they call into question their ability to execute and even to program. This loses the confidence of not only investors, but developers. Do developers want to spend months of work on apps to be run on products with an indefinite release and an uncertain future? What happens to them if RIM is bought or if BB10 is delayed further?

     

    What's left? Their subscribers and their patents. I have questions about how valuable the patents are, but they aren't worthless, and neither are the subscribers. Thus, looking at this, the stool can't stand on two legs and so the fall will continue, but there is some value present. My guess is that the cash will get burned away and the rest will be worth somewhere north of 5...but that doesn't mean that the stock won't dip temporarily lower. Of course, 5 isn't all that far to go, being that we are at 7 and we were in the 60's last year...
    29 Jun 2012, 04:15 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Agree with your assessment. RIM really needs to change out the board completely to get rid of the dead wood and the founders who are only annoying at this point. The founders also make a sale less likely as they are baggage.

     

    Right now this company is moving from one conference call to another and a lot of chatter about BB10 which is not a strategy. In fact with it being late it may be behind the curve even further as Apple can raise the bar on them and bury them by next year.
    29 Jun 2012, 11:58 PM Reply Like
  • kherman
    , contributor
    Comments (768) | Send Message
     
    Shhhhh ... let peopple that researched the matter know more than you.
    14 Aug 2012, 07:11 AM Reply Like
  • kherman
    , contributor
    Comments (768) | Send Message
     
    Wouldn't the delay result in. A better product and more sales? Just saying ... if you were at the top would t you think about these things and know more about the internal numbers than thomasviewpoint? Sorry, but your viewpoint is not very well thought out
    14 Aug 2012, 07:14 AM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    "if you were at the top would t you think about these things and know more about the internal numbers"
    You would think so, but that isn't how these train wrecks work....the mess at HP shows that the top can be pretty chaotic and confused... Actually Tomas actually thought about this carefully before going long RIMM....and it saved a lot of money and misery....that's what good investors do, investigate with eyes wide open....

     

    "Wouldn't the delay result in. A better product and more sales?"
    When we call it a delay, we are saying that they needed to produce a complete, quality product....on time....

     

    By burning more time you do three things: burn profits because of your aging product line, lose customers and market share, try the patience of your shareholders....

     

    Don't think so?....see what happens and what shareholders do if you delay again.....you think they will say, "well, it's okay, they will have a better product as a result"? No, they will head for the exits....like many of you should have a long time ago....

     

    ....a handful of you will just dig in your heels and continue justifying as the disaster continues because that it's off coming to terms with the pain that comes with admitting to yourself that you were wrong....not realizing that quickly recognizing when you are wrong is one of the pillars of becoming an effective investor....
    14 Aug 2012, 11:13 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    kh

     

    It does not appear you have worked in high tech or have paid attention to tech companies that cannot execute. The case studies are all around. Do some research. You might learn something.

     

    Beyond the research I know these problems intimately at a number of companies. That is I have lived it. You have no idea how hard it is to turn around and founders can be the biggest problem.

     

    Delays are never good but can be managed if they are short and/or if the company is in an unassailable position. That does not describe RIMM.
    14 Aug 2012, 08:07 PM Reply Like
  • scott trader
    , contributor
    Comments (4638) | Send Message
     
    the writing has been on the wall for so long share price is starting to really show shareholder lack of confidence........delay delay delay....DOA
    28 Jun 2012, 09:10 PM Reply Like
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