BlackBerry: Looks like ‘game over’ for RIM – The Buzz – Dec. 16, 2011
For anyone who thinks RIM may be a value stock, I give you these sage words of advice from Admiral Ackbar in “Return of the Jedi”: “It’s a trap!”
There is no sugarcoating RIM’s latest earnings report. The company warned that sales and profits for the next quarter will be far below already reduced forecasts.
It also announced that its new BlackBerry 10 smartphones, trumpeted as the company’s savior, have been delayed until the end of 2012. That’s an eon in the fast-moving consumer tech world.
That’s why the stock plunged 12% Friday morning. Shares are now down 77% year-to-date and are trading at their lowest level since January 2004.
The company can’t afford to be Research in Slow Motion at a time when it is facing brutal competition from Apple (AAPL, Fortune 500) and from handset makers like Samsung and HTC that have latched themselves to Google’s (GOOG, Fortune 500) Android wagon. Even Nokia (NOK), thanks to an alliance with Microsoft (MSFT, Fortune 500), is a threat.
BlackBerry: Looks like ‘game over’ for RIM – The Buzz – Dec. 16, 2011.
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