This Day On The Street
Continue to site
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

Something's Wrong With GM, Not Facebook or the Super Bowl

NEW YORK ( TheStreet) -- Companies do just implode overnight. Long before the downfall -- before we draw conclusions on the wall -- we often can point to some sort of writing the company in question wrote on the wall.

Take Research in Motion (RIMM) as an example.

While I receive quite a bit of credit for calling that short, I was not on the case until April of 2011. Former RIM CEO Jim Balsillie gave us a red carpet preview of his ineptness the previous fall. Consider an excerpt from the tour of inanity Balsillie went on late in 2010:
You don't need an app for the Web. I don't need a YouTube app to go to YouTube. There's this view that Web sites need to be repurposed for mobile and you need a special set of tools to do it. We don't believe that to be true.

I'll pause while you call over a co-worker, your spouse, mistress or dog to see that ...

Just an astonishingly off-the-mark analysis.

For the record, here's the comment from Apple's (AAPL) Steve Jobs that Balsillie was likely reacting to:
"We've now passed RIM, and I don't see them catching up with us in the foreseeable future," Jobs said. "They must move beyond their area of strength and comfort into the unfamiliar territory, of trying to become a software platform company."

It's all so simultaneously pathetic and comical that I could go on all day, but enough about RIM and the company Steve Jobs built that Tim Cook can only hope to sustain. That nifty lead-in shows us how being ahead of the curve can pay off big time for everybody from entrepreneurs to investors.

General Motors (GM - Get Report) could very well be at the early stages of a RIM-like decline.

Of course, all corners of the media -- from financial outlets to yak-happy morning shows -- could not see through their Facebook( FB - Get Report )hate, as they beat the news that GM decided to stop advertising on the social media powerhouse.

Then, days later, GM announced it would no longer shell out the dough to advertise on the Super Bowl. Apparently, one of the nation's biggest advertisers finds itself in the middle of marketing-related reorganization as it takes an apparently long, hard look at how it throws its ad dollars around.

Maybe so. Or could we be witnessing the not-so-early stages of a dying company?

When you question Apple, you get a negative response from the combination of uber-cool and geeky segments of society. I get it; I react the same way when somebody tries to talk down Steve Jobs. When you go after RIM, you receive reaction from the few Canadians who just cannot let the RIM dream go. I get that as well; my Dad was born in Toronto and I am a diehard Maple Leafs fan.
1 of 2

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $93.98 2.10%
GM $31.75 0.06%
AAPL $110.76 0.34%
GOOG $641.28 2.30%
TSLA $246.00 -0.63%


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs