Research In Motion, on the other hand, may not have the BlackBerry 10 in hand, but it sure has the cash on hand, and I am convinced after last night's quarterly report that this stock has become a better LONG than a SHORT. Now that the bleeding has stopped, Research In Motion might catch a bid for just its intellectual property, including a great keyboard and its 80-million-strong subscriber list alone. I would not normally recommend any stock on a takeover basis, but I think many bidders are hoping Research In Motion goes the way of Kodak or Nortel and could be bought on the cheap. This quarter put that scenario to rest; therefore, it put the SHORT story to rest, too.
Have you even looked at why cash went up? stop reading headlines and actually dog into the numbers and maybe, just maybe will change your mind and realize that the bleeding is still well underway...if this was a ballgame the bleeding would be around the 4th inning...
yada,,,yada,,,yada,,,before the earning announcement you and every nay sayer said the company will burn cash and go bankrupt...yeah..you said the company will go bankrupt... Now that they have increased the cash position, you came up with another excuse to bash the company....come on get your head out of the sand....heed the warning and cover your short position.
Wrong. What helped them keep cash level this past quarter (A/R etc.) will not be the same as how they do it this current quarter. They will keep pulling rabbits out of the hat until BB10 is released. They have many numbers to play with it. Did you not hear them project a LEVEL cash position for this current quarter? That's what was far more important than the past quarter. Even though their numbers will be worse this quarter, no doubt about it, they are confident that cash wont' be burnt. Incredible. So let's say they are wrong, and they wind up burning $200MM, $300MM or even more. So what? The only thing that matters is that they are not going to burn through enough cash to threaten or diminish a BB10 release. Not even close. Supposedly, the stock got killed because BB10 was delayed and the assumption was that they'd burn through a ton of cash and not make it to the BB10 finish line. Of course, that was just the cover story for the criminals to do their thing. But that assumption has now been proven FALSE and will no longer provide cover.
Did you not hear them say they might be able to come up with an additional $800 MM in savings via their CORE program? That's right - only $300MM was booked so far.
Did you not hear the way Heins talked about the ongoing review? It was surprising the way he spoke about it. Read between the lines. It wasn't just the usual lip service. If anything, that was the single most important part of that conference call. I believe that he knows there is something big coming up. He's not a great poker player. lol.
Last week, between BB Jam and the quarterly, RIM changed the market's perception. Changed expectations. Friday will prove to be a bear trap. Did you not see the volume? Did you not see that we actually had price target upward adjustments from a few analysts? Put that 2+2 together! Who do you think was buying? And who do you think was selling/shorting? RIM isn't going anywhere and we will soon get to see what happens with BB10.
One last thing. I have never been one to tout a takeover. Read my posts. I have consistently said they wouldn't be bought out, or at least not until after BB10 was released (if at all), OR in a liquidation situation. I still don't think they'll be bought. For people buying the stock here, a takeover is totally unnecessary. It's a double within 3 to 6 months. But I do think Google and Microsoft and Apple are absolutely *INSANE* not to scoop this company up - before BB10 is released and the stock price is much higher. They are making a very big mistake by allowing RIM even a small chance of coming back big.
Every company will burn more cash during the product development cycle. RIM has completed the product development and anything they sell now is cash for them. Sir...no myopia here...this is longsight.... iPhony is not as hot anymore...and the shorts better heed warning.