Don't Even Think About Buying Rimm. Rumor False. Company Is Finished.
Danny, guys, save your money. Lenovo is not buying RIMM, and neither should you. This is a false rumor.
"Lenovo downplays RIM acquisition rumors"
The company says that it's not necessarily looking to acquire Research In Motion and that its CFO's comments last week were taken out of context.
Lenovo has backed away from speculation that it is planning to acquire Research In Motion.
In an interview last week with Bloomberg, Lenovo Chief Financial Officer Wong Mai Ming said that his company is "looking at all opportunities" as it pertains to acquisitions and that a dialogue is open between RIM and Lenovo.
Soon after, the Web erupted with claims that Lenovo and RIM are talking about a buyout.
However, in a statement e-mailed to CNET today, a Lenovo spokesperson said that Wong's comments were taken out of context:
"We are aware that Lenovo's CFO...was speaking broadly about M&A strategy in a recent interview. RIM was raised as a potential target by the journalist and Mr. Wong repeatedly answered in a manner consistent with all of our previous statements on M&A strategy: Lenovo is very focused on growing its business, both organically and through M&A. When inorganic ideas arise, we explore them to see if there is a strategic fit."
Aside from that, you should never buy any stock on buyout rumors. That is just gambling. I have been reading about RIMM all night, and their roll out of the new phone today was a disaster. The phone got terrible reviews on "Gizmodo", a site that reviews new technology. The camera in the phone is terrible. RIMM only had 4.7% of the worldwide market before, with APPL and Android having over 90%. Add to that the fact that Chinese phone companies are entering this market with more competition, and you can see that RIMM's market share is shrinking even more.Also, their phone won't even be for sale for two more months, at least. RIMM is finished as a company, IMO. As Johnson said, the U.S. government is their biggest customer, and they are not looking to upgrade. Also, the companies presentation today smacked of desperation: new name, Alicia Keyes, etc. It was a joke, and that's why it sold off so badly.It was also downgraded to "sell".
Check my post on the RIMM board:
RIMM is a strong, strong sell here. You should be looking to short it.
It's going back to $12, probably tomorrow, and much lower in the weeks & months to come. I know I will be shorting it. Short it, or just stay away. Do not buy.