The 5 Dumbest Things on Wall Street: June 24
5. RIM's Silly Semantics
Will somebody please get Research In Motion's (RIMM) co-CEOs a thesaurus? How about simply a clue?
The mobile device maker reported its fiscal first-quarter results late last week, beating analyst estimates by a penny on the bottom line while missing by an ugly $200 million in sales on the top. Research In Motion also significantly lowered its outlook for the full year, predicting earnings of between $4.25 and $6 per share, down from $7.50. The lowered guidance had traders unloading RIM's stock -- it's down nearly 20% since last Friday and sitting near multiyear lows -- almost as quickly as customers are abandoning its gadgets in favor of Apple's (AAPL - Get Report) iPhone and devices powered by Google's (GOOG) Android operating system.
Nevertheless, it's not RIM's wretched results that make us want to juice the Blackberry maker. No, it's the silly semantic games of Jim Balsillie and Mike Lazaridis, the company's co-CEOs, at the post-earnings press conference that has us wondering if there is a lick of sense between the pair, let alone a future for the company.After announcing a wide-reaching plan to overhaul its organization through new product launches, cutbacks and layoffs, Balsillie challenged an analyst for referring to his reforms as a "restructuring." "I would not call it a restructuring, and I just think that this
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