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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

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.

Stock quotes in this article: RIMM, AAPL, GOOG 

At the time of publication, the author held no position in any of the stocks mentioned, although positions may change at any time.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs