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

Research In Motion Is on the Verge

NEW YORK (TheStreet) -- Research In Motion (RIMM) is dangerously close to a distinction that few companies achieve.

It's also one that no company would ever desire.

The company that brought us the BlackBerry, a word that is very unpopular in our house because of my propensity to use the device at all hours, is trading very close to its net current asset value.

Another 10-cent drop in its share price and it will become what is known as a "net/net," a term used to describe a stock that is trading for less than its net current asset value.

Research In Motion has had quite a fall since its shares commanded $140 back in 2008.

Currently trading at just 1.01 times NCAV, Research In Motion has had a rough year.

The company earned more than $3.4 billion in 2011 on revenue of $19.9 billion. That represented a solid 17% net profit margin.

Last year, revenue fell 7.4%, but the bottom line plunged nearly 66% to $1.16 billion. Consensus estimates for fiscal 2013 call for a further drop in revenue, to a bit more than just over $10 billion, and for losses of $1.51 per share.

Research In Motion has not done itself any favors in the public relations department either.

This past Friday it issued yet another apology -- this time to users in Europe and Africa who faced three hour delays in sending and receiving messages.

Technical difficulties aside, the company is losing market share and facing intense competition, especially from Apple's (AAPL) iPhone.

Even yours truly is contemplating making the switch. Now I'm not the most technically savvy, and I don't need the latest gadgets. I've used a BlackBerry for years and never had any service issues. Overall, the BlackBerry has saved me, from a business perspective, many times.

But I have had problems with the device itself. My current version is on its last legs; the trackball is not working properly, and I'm not sure what I'll do at upgrade time.

My (and other users') BlackBerry woes aside, the question is whether there's any life left in this company. Will the company's next-generation devices, due out in early 2013, help to right the ship and reverse market share declines?

Stock quotes in this article: RIMM 

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 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

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