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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

RIM's New Smartphone Overshadowed by Quarterly Loss

Still, with RIM in the throes of its strategic review, investors and analysts are clearly concerned about the lack of progress.

"While there has been much negativity surrounding the name for some time, we had hoped over the past 9 months RIM would move in an expeditious manner and make bold strategic changes, comprised of either a transition to software/services model, an outright sale, or monetizing a portion of its portfolio/patents," wrote Amitabh Passi, an analyst at UBS, in a recent note. "However, meaningful change has been limited with RIM continuing to stake its future on BlackBerry 10."

Passi, who also has a "neutral" rating on RIM, warns that the firm's "niche advantage" in the enterprise smartphone market is eroding quickly. "We believe there is still a case for the sum-of-the-parts to be greater than the current market price, but time is of the essence," he added.

Earlier this year, TheStreet's readers said that the Waterloo, Ontario-based firm should sell itself. Amid chatter that RIM would make rich pickings for Microsoft (MSFT), Amazon (AMZN), HTC or even Facebook (FB), 43% of respondents to TheStreet's poll said the firm should put itself on the block. Some 18% replied that the gadget maker should carve off parts of its business.

Tellingly, just over 15% of readers said RIM CEO Thorsten Heins should execute a turnaround plan, highlighting the lack of confidence in the company. A similar number of respondents said RIM should liquidate itself.

There was even a rumor during the summer that IBM (IBM) was interested in acquiring a RIM division that operates a network of secure servers supporting BlackBerry users, although this was likely way wide of the mark.

As for RIM's second-quarter numbers, Sterne Agee's Wu says the firm's cash position will be crucial. "Arguably the most important metric will be its cash balance, which stood at $2.25 billion in the May quarter," he wrote. "There will likely be an operating loss of nearly $400 million, but the question is whether the company can still preserve or even grow its cash balance by collecting on its accounts receivables and changes in working capital."

RIM shares slipped 1% to $6.93 on Thursday, despite the broader rise in tech stocks that saw the Nasdaq gain 1.1%.

--Written by James Rogers in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

2 of 2

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.
Submit an article to us!
DOW 17,039.49 +60.36 0.36%
S&P 500 1,992.37 +5.86 0.30%
NASDAQ 4,532.1040 +5.6220 0.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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