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

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.

At the time of publication, the author held no position in any of the stocks mentioned, although positions may change at any time.
2 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
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 $126.44 0.00%
GOOG $523.40 0.00%
FB $87.28 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs