2) Same Old for RIMM
Old problems continue to haunt Blackberry maker Research in Motion (RIMM). Now that the company has announced the resignation of co-CEOs Mike Lazaridis and Jim Balsilie, and the appointment of insider Thorsten Heins from COO for Product and Sales to head honcho, what's changed? Not much, says Goldman Sachs. Analysts say the company's strategy remains uncertain.
However, given that that company has missed six out of the last eight quarters, lost half its market share, and more than 75% of its market capital in the last two years, Goldman Sachs says the corner office change is a near-term positive. The firm speculates that a sale of the company may be a greater likelihood, noting that Heins has suggested an interest in licensing the BlackBerry 10 OS. Another upside if that the new CEO may get aggressive in cost reduction.
Some investors want a break-up of RIM, which has struggled to compete against rivals Apple (AAPL) and Google (GOOG). In a conference call Monday, Heins said that he would not split the company, although he said that he was open to licensing-partnership offers."Past the initial reaction in the stock, we would be cautious, as new CEOs often reset guidance lower in the first quarter to more achievable levels," writes Goldman Sachs, which is keeping its one year price target on RIM at $14 a share. Research in Motion dropped more than 8% on Monday to $15.56 a share.
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