RIM: Berries Dying on the Vine
RIM no longer provides guidance, and I can't immediately disagree with investors arguing RIM hasn't provided accurate guidance for over a year. What strikes me as odd is the recent warning RIM provided and yet didn't disclose the delay with BB10.
Heins should have already known BB10 needed to wait until 2013 unless the situation changed between the earnings warning and the earnings release. If he knows, why didn't he disclose at the first chance?
Letting the public know of more delays may mean those holding out can "safely" go ahead and buy a Blackberry and not worry a newer model is coming out next week.
There is no reason to protect the stock price, because what's the difference if RIM shares tank as a result, in May or June? None really.The most logical explanation based on the limited view RIM provides is BB10 is all but dead. Sure, perhaps a "BB10" is released, but for all intents and purposes, the only thing RIM is trying to market and sell now is RIM itself. If Heins cuts the staff for development along with all the other related staff, the costs for the company can come down dramatically. It's a scorched-earth policy that doesn't work for long in tech, but it doesn't need to work for long.
If all you're selling is the current customer base, IP assets and infrastructure, why put a lot of money into creating new technology that isn't likely going to compete against iPhone 5 and Android? If Hein believes a sale is going to happen sooner rather than later, it doesn't make sense to pour millions of dollars into a project a buyer may not want. Watch for a sale of RIM. Better yet, if you're an investor, hope for a buyout within 2012. Any other move is unlikely to provide a greater value for shareholders at this point. I imagine management at Nokia is paying close attention also. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV