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  • Research In Motion (RIMM) shares are halted after the company provides a business update in which it says it has hired JPMorgan and RBC to assist with a "strategic review" that will cover licensing and partnership opportunities, and "strategic business model alternatives." A prior report claimed RIMM was leaning towards hiring JPM. RIM also says it expects to report an operating loss for FQ1 (ends June 2), citing both lower volumes and tough pricing - analysts currently expect EPS of $0.43.   [View news story]
    Cant go to zero. No debt, they can pay off all liabilities and still have net cash of 2.1billion, excluding inventories. Add patents, property, plants and equipment valued well over 6billion. Please correct me if I am wrong, but has any company voluntarily gone bankrupt? Normally they go bankrupt if one cannot meet its long term debt obligations, hence Greece. So sorry to say, its not going to happen.
    May 30, 2012. 11:57 AM | 2 Likes Like |Link to Comment
  • Buying Nokia (NOK) under $3 today is like buying Ford under $2 in '09, argues SA's Jacob Steinberg. As was the case with Ford back then, Nokia commentary is filled with talk about market share losses, cash burn, and credit rating downgrades. However, also like Ford back then, Nokia maintains a powerful brand and significant cash reserves, and is rolling out compelling new products.   [View news story]
    Not if they have no debt! Have you ever heard of a company voluntarily going bankrupt just to appease a few people who want them too? Zero long term debt. No creditors.. Ability to finance the company through retained earnings, operational cash flow is normally positive even with losses and a bucket full of cash/receivables. I've always excluded inventories, quick ratio of 1.5 and that leaves zero liability as have no long term debt. So we are left with a company $2.1 billion in cash after paying all liabilities and all of its assets including patents, property, plants and equipment valued at about 6.3 bil. Service revenue is like an annuity and just keeps on paying. So stop selling phones and keep the service, still worth more then it is now.
    May 30, 2012. 11:19 AM | Likes Like |Link to Comment
  • Research In Motion (RIMM) shares are halted after the company provides a business update in which it says it has hired JPMorgan and RBC to assist with a "strategic review" that will cover licensing and partnership opportunities, and "strategic business model alternatives." A prior report claimed RIMM was leaning towards hiring JPM. RIM also says it expects to report an operating loss for FQ1 (ends June 2), citing both lower volumes and tough pricing - analysts currently expect EPS of $0.43.   [View news story]
    IBM? Have you seen their stock, earnings, revenue growth, margins? Not sure what your referring too, but IBM owns technology.
    May 30, 2012. 11:07 AM | 1 Like Like |Link to Comment
  • Research In Motion (RIMM) has resumed trading, and is now down 11.2% AH, making new multi-year lows in the process. With rumors already in place about the hiring of strategic advisers, and a sale not mentioned among the options RIM claims JPMorgan and RBC will advise on, investors are focusing on RIM's guidance for an FQ1 loss.   [View news story]
    More shares of RIMM have been sold over the last month then actually exist. Who is selling today? All shares have already been sold! But, if I borrow a 1000 shares from broker/dealer A, then Sell, then borrow again from Broker Dealer B, Sell, then again borrow from Broker Dealer C, then sell, lets see 3000 shares have been sold, 3000 bought, but only one person actually truely owns the original 1000. The government does nothing against this? Short Selling is in the best interest as it helps with price discovery they say. Is that why over 25% of EWZ is shorted (Brazil)? A higher % then the depression? By the way, the last time short interest was this high on EWZ, it doubled!
    May 30, 2012. 08:40 AM | Likes Like |Link to Comment
  • An Apple Investor's Case For Buying Nokia: #3 In Smartphones Is Achievable With Microsoft's Backing  [View article]
    And Apple a decade ago was no Apple. For anyone who says Nokia is dead, they are the same who bought Apple at $400, not $40, they said Intel was hemorrhaging due to ARM based chips and Qualcom, and that Microsoft was A dinosaur left for extinction. The fact is, millions of today's youth have a much more positive experience with Microsoft. Today, unless you've been around using computers for a decade plus, all you know of Microsoft is Xbox. Xbox live has taking off and can build from just games to service really any content. Microsoft has Skype, which many forget will be/is the standard for video calls. Facetime is only good if you have an Iphone, but 92%+ of the population does not have An Iphone, many internationally are committed to Skype. My new LG Cinema Led has Skype, so once I set it up, I'll be able to call everyone except Apple users, who will be in the minority. Skype integration with Live Meeting, office products, Xbox live, Smartphones, TVs etc will continue to solidify its place and frustrations grow for those on a different platform.

    PS. The iphone now looks like a toy in comparison to the latest and larger Android and Windows based phones. The Ipad is no different then a laptop without the keyboard, add a wireless keyboard and you have a laptop. So if you really want something that is portable, then buy a 9 inch tablet, btw, the playbook from blackberry is awesome. Only complaint is lack of integration with certain tasks but that is really it and it's not like the Ipad has any better integration with Windows based software systems. The Ipad will be toast once someone comes out with a pure glass tablet. Gorilla glass 2 is as strong as steel, and a device made purely from this will be truly revolutionary. Corning has this vision, I'm sure someone is working on it and I doubt it is Apple as it would be a big change from current design. No company can maintain a permanent economic profit, the smartphone industry is growing rapidly, and even with declining Market share, Nokia can still increase sales(RIMM Too). With today's budget conscious shopper, will Nokia survive? 100%.Will Apple be able to convince people to continue to pay a premium for their prices products which really offer little advantages to the real world user, no.
    Long NOK.. Long RIMM.. Long Apple. Nok and Rimm will bounce once the long short trade plays out. Any hedge fund, is selling Rimm, Nokia, and using the proceeds from that short sale to buy Apple. We will see a short squeeze and this will occur sooner then later. Would you be short RIMM, around. BB10 launch?or Nokia. When Windows 8 is released?
    May 29, 2012. 08:53 AM | 4 Likes Like |Link to Comment
  • Schumpeter's Creative Destruction And Nokia's 41 Megapixel Camera Innovation  [View article]
    Bye bye Cannon!
    May 24, 2012. 11:44 AM | 2 Likes Like |Link to Comment
  • Has Research In Motion Become A Bargain?  [View article]
    Let's see, take that $2.7 billion excess working cap, buy back just under 50% outstanding shares. This would also cause shorts to cover including the many naked shorts. Over 100% of the outstanding shares of Facebook traded in one day, yet it went down. How can that be? Zuckerberg didn't sell his shares on the 1st day. Yet the Sec is investigating Morgan Stanley and their equity analysts because they did not maintain a buy rating? Are being sued because the stock did not go up? Wouldn't it be a crime if they maintained the buy rating in the asset mgt side to support the investment banking issuance of Facebooks IPO and then downgraded it after it already went down 30% like JP Morgan did to Bofa and Cities after they lost 2 billion.. The fact that it was downgraded actually demonstrates that Morgan Stanley and the banks, have been able to separate these divisions, their internal interests and potential conflicts. So instead of investigating Morgan Stanley for doing what was right, investigate the massive volume and declines on stocks like Rimm. And Nokia. The 22% short interest on ewz is just sickening. If I were Brazil, Ewz, I'd be getting a bit angry that foreign interests are the primary cause for the 30% decline this year to their stock market. If I were mad enough, it almost be a declaration of war. At least that's what we'd do if Iran was sabotaging our financial system.....
    May 23, 2012. 08:47 PM | Likes Like |Link to Comment
  • Cutting Costs Will Be A Major Factor In Nokia's Turnaround  [View article]
    Funny thing is, their selling more phones ytd in the US then they did all of last year.
    May 23, 2012. 08:12 PM | 1 Like Like |Link to Comment
  • As revenue plunges and share losses mount, worries about Nokia's (NOK) cash burn are growing: the company has gone through $2.7B over the last 5 quarters, a rate that, if continued, would wipe out its $4.9B in remaining reserves in less than 2 years. Moreover, Nokia has €1.25B ($1.59B) in 5.5% bonds due in 2014. Liquidity fears have resulted in Nokia's credit rating being downgraded to junk, and its 5-year CDS spread widening to 749 bp.   [View news story]
    It also ignores the annuity income from royalties thanks to Apple and Google, the Billion annually from Msft. Wait a minute, oh these two examples equate 1.6 billion. How much was that debt? Wait, in 2 years, so double that to 3.2 bill. If I read their financial statements correctly, they have 3.8 billion in Long Term Debt. I'm not too scared, they can pay this even if cease to ever make a profit which we all know will not be the case. The Lumia 900 is more stylish, larger and provides better value then the Iphone. Hence why sales in China are doing well.

    interestingly, Verizon said today that unlimited plans are going away. That their gonna make those that are grandfathered pay more for the device. Giving data usage charges will continually increase, RIMM actually will be the biggest beneficiary as they use the least data thanks to their proprietary network a lot of the bandwidth is redirected. So BlackBerry has a very strong differentiation in that it consumes less bandwidth, hence why they're so successful in India. India is primarily 2 g or worse and the blackberry is the only smart phone that really works on low tech networks.
    May 18, 2012. 10:57 AM | 1 Like Like |Link to Comment
  • Cisco: Too Much Of A Decline?  [View article]
    All business are tough, no one said competition was easy. The quality of earnings is more important then earnings itself and second, profit margins. If Cisco were in that much trouble, they're margins would be declining, not increasing.

    They would have to discount to win deals, which does not seem to be occuring. Go buy Apple and you will see what happens when profit margins decline!
    May 16, 2012. 10:11 AM | Likes Like |Link to Comment
  • Research In Motion: Going, Going... Sure To Be Gone  [View article]
    We're do I deposit my $5 for this fortune teller, as it ain't worry a cent more. Research in Motion was a profitable company prior to the blackberry device. You fail to mention the service model, their array of products for the auto market. Again, fiction, not fact. The only thing that will save the markets from themselves is Censorship. I'm losing all confidence in Free Markets, but not because I do not believe in it, but because it is being controlled by computers, attacked by those looking to make a quick profit, attacking entire countries and destroying jobs in the process. By spreading lies, misrepresentations, propaganda we hurt the integrity of the markets causing individuals to lose confidence. Retail participation in the markets are at a generational low. Institutions control the trend. Who the hell is buying treasuries paying 1.7% for ten years? Oh yeah the Fed. The Fed cannot buy longer dated treasuries as they do NOT exist. So how is it rolling it short term positions, buying long term as known as operational twist when there is no such thing anymore as a 30 year treasury. Yes they do exist, but with remaining maturities of 10 years and less. Again more lies. Obama is going to cracks down on futures because of the high price of gas. Gas is based upon Brent of which is traded in London. Wti is already cheaper, we just need more of it, aka pipelines from Canada, pipelines to the East and West. Does Obama know this, yes he is from Chicago, home of the futures exchanges. Again another lie unless his intent is to take over England. All financial companies are criminals, no JP Morgan was a mistake, their making sure it will not happen again. Who wants to lose $.Corzine is the criminal, not the entire financial sector. The fact is, we do not have enough tax revenue to pay for the 3 largest budget. If you add together social security, Military (which spending is declining) and Medicare/Medicaid, total expenses are 2.64 trillion. Tax revenue including payroll, income and corporate. = $2.43 trillion. So we are running a deficit of 20$ billion after these programs. The rest of government is being financed. Solyndra? We will be paying the interest on that loan into perpetuity. We are now borrowing to service our debt, budget deficit and outstanding interest which has gone from 6% of tax revenue to over 10% in ten months. If rates do rise, that % will increase and then say good bye to Entitlements as well have the same choices that the Greeks do. Who are the real criminals? The ones distorting the truth for their personal benefit, cause or whatever.. It's time to tell the truth or America will be the next Greece. Our debt to GDP is higher then France by over 10%,but you wouldn't know that by reading the news.
    May 16, 2012. 09:21 AM | Likes Like |Link to Comment
  • Cisco: Too Much Of A Decline?  [View article]
    It's called supply and demand. At the current market cap of 90 billion, how long would intake Cisco to buy back every remaining share? It can buy then back in European markets, therefore avoiding paying taxes on that 48 billion. Cisco has 7.7 billion allocated to buy back more shares. So 90-7.7=$82.3. They have 48 bill, or 30 net of debt. $82.3- 48= $34 billion. They are generating 3 Billion of free cash flow quarterly, or $12 a year. So if they want, in 3 years at these prices Cisco will become private. As share count continually. Goes down, and longs hold still there will be nothing left to short and the sky is the limit for any remaining outstanding shares. Will it happen, it is. Will they spend all $ towards buybacks no, but as we can see in 5-6 years this could occur and that be conservative. Since when do we frown upon companies that the produce exceptional profit margins, consistent annualized growth and massive amounts of cash.
    May 16, 2012. 08:52 AM | Likes Like |Link to Comment
  • Cisco (CSCO) shareholders hoping John Chambers will go are out of luck, a former exec tells BI. Chambers gets rid of anyone who challenges him, the exec claims, and Cisco's board consists of hand-picked Chambers selections such as ex-Yahoos Carol Bartz and Jerry Yang. In spite of huge stock buybacks, Cisco shares have been range-bound for over 8 years.   [View news story]
    Let's see, they have bought back 3.5 billion shares. Shares outstanding are down 10% just over last 3 years. They have another 7 billion allocated for share re-purchase and have a market cap below 90 billion. So subtract another half billion shares or 7 billion and outstanding shares will have a market cap of 83 billion. Another 48 billion in cash, quarterly free cash flows of 3 billion. In 3 years Cisco will only be able to do a non-leveraged buy out and take themselves private. That's all. Single digit P /E 's and a dividend well above a 5 year treasury in the mean time.
    May 15, 2012. 09:20 AM | Likes Like |Link to Comment
  • Mysterious Research In Motion  [View article]
    Finally someone who rights facts and not fiction.
    May 14, 2012. 03:52 PM | 6 Likes Like |Link to Comment
  • SocGen's Andy Perkins cuts his rating on Nokia (NOK) to "sell" from "hold" and slashes his price target to €1.80 from €3, saying that plunging handset sales, large operating losses and restructuring costs will burn into its cash pile, and "even bring into question Nokia's very survival." ADRs -4.7%.   [View news story]
    And he told you to BUY it in 2006 at $30 too. I remember the first time someone mentioned Nokia in an investment article, it said at $26 a share it was a steal. So I started watching Nokia and boy was it rated well. So when Nokia hit $20 I bought my first 100 shares. S&P rated Nokia 5 stars through January 2011! So they, like Andy here, told you to buy in the $20's, hold through the teens, buy again when we reached the high single digits, hold when we got to $5 and now sell when are at $3..

    Nokia is getting 1 billion a year from MSFT. At $1.8 a share that would value Nokia at $6.7 Billion.. They have more cash then that. Their losses were a large result of extraordinary expenses (massive layoffs. Google and Apple are paying Nokia Royalties of $600 million a year. This is one example, there are many others and will be more to come. However, the present day value of $600 mil at a 4% discount rate it is worth $15 Bill, a 3% discount rate $20 Billion, at 2% it is 30billion. Apple pays MSFT royalties too!
    So no matter what discount rate you use, its worth a hell of a lot more then 6.7billion as we are forgetting Nokia's Net cash/receivables of 8 Billion, the Billion from MSFT If they just closed up shop and managed their patent portfolio we would be talking at present value well above $20Billion.

    I have been buying more aggressively of late and am astounded by the negativity. These same people said Intel was dead 2 years ago, that ARM was becoming adopted standard and that they had lost their way... That MSFT as an investment was dead. They told you not to buy Apple when it was at $30, but to buy NOW when it is at $550...

    Beware what you read as nothing is real anymore. Misrepresentations, Bias, Conflicts of Interest, Propaganga etc have all made our News Feeds weapons of mass destruction. Who wants to take down a company? Lets start a rumor and short!

    May 14, 2012. 09:52 AM | 23 Likes Like |Link to Comment