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Following Research In Motion's (RIMM -15%) FQ1 miss, discussion is shifting from market share...

Following Research In Motion's (RIMM -15%) FQ1 miss, discussion is shifting from market share losses to the company's survival. Canaccord's Mike Walkley thinks the hardware business now has a negative gross margin, and expects a sale to eventually happen. BofA, which is downgrading RIM to Underperform, declares "the risk of total value destruction" a possibility. Wedge Partners' Brian Blair argues RIM can only survive as a low-end/emerging markets vendor. (MSFT offer) (transcript)
Comments (4)
  • pierrebonbon
    , contributor
    Comments (92) | Send Message
     
    Right. They'll now sell in-stock older smarphones as stupidphones in the emerging markets.
    29 Jun 2012, 09:52 AM Reply Like
  • Ben Sanderson
    , contributor
    Comments (21) | Send Message
     
    RIM's BB7 phones are still excellent phones, as good as some Android phones and the iPhone. It's disappointing that the BB10 is late, but that doesn't mean RIM is done. Just more analyst RIM bashing for no good reason. The bad quarter was expected.
    29 Jun 2012, 10:41 AM Reply Like
  • pierrebonbon
    , contributor
    Comments (92) | Send Message
     
    Analysts expected 3.08 billion revenue instead of the actual 2.80 billion. It's 33% less revenue than expected, it's huge. They say they've improved their cash holdings from 2.1 billion to 2.2 billion, that's an increase of just 4.76% and without new phones to sell until at least early 2013, they'll be simply burning it. I sure wouldn't like to hold stocks from RIM at this point, not until the slightest hint of good news is heard.
    29 Jun 2012, 11:11 AM Reply Like
  • sreimer77
    , contributor
    Comments (227) | Send Message
     
    Net of all current liabilities, RIMM has 3.4 Billion in cash/ receivables and other tax deferred assets. So, they have two years worth of cash assuming no positive cash flow, which is not the case, especially as expenses are reduced. Giving the current market cap of $4bill, RIMM should instead take that cash and buy there own stock and go private. I'm sure they could borrow the difference, which is only 600million.\
    29 Jun 2012, 12:26 PM Reply Like
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