No. 1 Investor Buys RIM, News Corp., Cisco
The fund bought 1.5 million shares of Research In Motion (RIMM), initiating a stake worth $43.3 million during the second quarter, which is a 0.8% portfolio allocation.
The company is best known for being an early innovator of wireless-communications devices with its BlackBerry product line, but it has lost market share to Apple's (AAPL) iPhones and Motorola's (MMI) Android line of devices.The Waterloo, Ontario-based company announced the layoff of 2,000 workers on July 25 as part of a "cost-optimization program," whereas Apple has been hiring staff. Research in Motion has a market value of $13.1 billion and its shares have a forward price-to-earnings ratio of 4.7 versus the Standard & Poor's 500's 14.2. It had an annual average earnings growth of 53.4% over the past five years, while its revenue grew from $300 million in fiscal 2003 to almost $20 billion in fiscal 2011. But its shares are down 49% over the past three months and 57% this year. Over the past three years its shares have averaged an annual decline of 41%.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV