This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The 5 Dumbest Things on Wall Street: May 20


4. Research in Motion Recalls Tablet, Stumbles Toward Oblivion

When Research In Motion's (RIMM) PlayBook recall was announced on Tuesday, it drew the very name of the company into doubt.

The Research? Maybe it could stand to be better. The Motion? Does backward count as motion? Or how about falling down? That's motion!

Indeed, for a company that has yet to find an answer to Apple's (AAPL) iPad, having to recall about 1,000 of its new PlayBook tablets (less then two months after it launched) due to problems with the operating system startup probably wasn't the best marketing strategy. And while the recall doesn't cover all PlayBooks, it is a particularly bad start for RIM's new QNX software, the foundation of all new BlackBerry devices.

The news sent RIM shares down to an almost two-year low as investors started to lose hope in the BlackBerry maker's turnaround prospects.

The weakness comes at a time when Apple's iPad 2 is enjoying breakneck sales in the U.S. and scattered sellouts overseas. Apple has dominated the segment it largely created last year when it introduced the iPad. And with prices for the iPad ranging from $500 to $840, competitors have had a difficult time beating Apple on price and features.

Even worse for RIM, the competition heated up this week as HTC launched pre-sales of its seven-inch Flyer at Best Buy (BBY) for $500 and as LG started taking pre-orders for its Optimus Tab, a 9-inch, 3D-ready tablet that sells for as much as $1,200 in the U.K.

And on the other end of the price spectrum, Amazon (AMZN) is expected to introduce its own tablet (or tablets) in time for the holidays. "Stay tuned," Amazon chief Jeff Bezos said recently when asked about Amazon's tablet plans.

For RIM, a flub of its PlayBook effort could be damaging. The tech shop has had a critical lack of compelling new BlackBerries to attract smartphone buyers leaning toward Apple iPhones or Google (GOOG) Android devices. The PlayBook, with its Android compatibility and the BlackBerry business-user pedigree, was considered one of the few viable rivals to Apple's iPad.

TheStreet Says: RIM has stumbled in tablets before. Last year it pulled the introduction of its hotly-anticipated BlackPad when it could not successfully debug the device, eventually switching to Texas Instruments (TXN) as a chip supplier. So at least we can give RIM points for consistency.

2 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs