This Day On The Street
Continue to site
ADVERTISEMENT
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

The 5 Dumbest Things on Wall Street This Week: Jan. 27

4. RIM's Seismic Silliness

Research In Motion's (RIMM) new CEO must be working off a different Richter Scale than us, because we clearly have different interpretations of what can be considered "seismic."

RIM's stock buckled more than 8% on Monday on the news that Thorsten Heins would be replacing Co-CEOs Mike Lazaridis and Jim Balsillie atop the company.

This latest shock comes after shares of the Blackberry maker cratered 74% in the past year, as it continues to relinquish market share and relevance to smartphone leaders Apple (AAPL - Get Report) and Google (GOOG - Get Report).

Apple's stock, in contrast, has gained 27% over the same time period, while Google's has dipped just 5%.

"This is not a seismic change," said Heins said on a conference call with investors on Monday, reiterating his desire not to split up the company. "I don't think there is some drastic change needed."

Wow! The company loses three fourths of its value in 12 months and its new CEO doesn't believe a massive overhaul is required to save the remaining quarter? Man, if we owned RIM stock right now, we would certainly be running for shelter too.

Then again, maybe we should have expected such a placid reaction from the well-entrenched Heins, considering he has been with the company since 2007, previously serving as its chief operating officer.

Prior to that position, Heins served as a former Siemens AG (SI) executive, which clearly did not help his cause with those Wall Street analysts who believe RIM requires a leader with a consumer-based background to stem Apple's advances.

"People may have been a little disheartened that he was defending the current RIM strategy," said Morgan Stanley analyst Ehud Gelblum. "I think (investors) might have wanted to hear a mea culpa."

Said Gartner analyst Carolina Milanesi to Reuters, "Picking Thorsten is a sign that they haven't quite decided that (a sale is what) they want to do, so they might give it yet another shot at looking at the business and trying to come back."

In other words, the market wanted a mover and a shaker. But RIM slipped again by choosing to stand its ground.
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $122.99 -0.32%
GOOG $631.93 0.63%
GM $31.95 2.01%
JCP $8.29 1.10%
M $69.19 0.45%

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs