Yes, this is "old news". Back in February, star hedge fund manager David Einhorn of Greenlight Capital invested $45M in RIMM stock when the stock was trading above $14.
My question: Is RIM really worth only half as much now as it was five months ago?
Yes, the company posted a big loss on an inventory and goodwill writedown - but wouldn't one of the world's best hedge fund managers have seen that coming? I think RIM is the same troubled, marketshare-losing company it was five months ago, but David Einhorn - and now Prem Watsa both increased positions. It's interesting on how the CNBC panel agreed (back in February) that there was / is value in the stock at $15, but today, they all hate it at $7.
Love or hate RIM, I don't understand what fundamental change in the company for the stock to be cut by more than 50% in five months. Thoughts?
I've learned a lot about this company. It's losing enormous amounts of money, shedding employees, its market share has collapsed, and its long-shot Hail Mary BB10 effort has been postponed. That sounds like a great candidate for shorting/bashing/etc. Problem?
learn more about the company you are bashing...The invested 400million last qrtr on acquisition and licensing fees....Last time I checked my J/O SHORT SELLER/BASHER/lIAR you need to spend money to make it
<Einhorn bought at $14 and Watsa at $7. Both are generally considered experts, and yet, are invested in RIM>
Watsa started buying when the stock was in it's $50's! If he was such an expert with inside information (as longs regulary claim)he would have bought in today ay $7. He would have also waited until after the last 2 profit warnings and earnings misses.
Wouldn't you? Or would you buy before the profit and earnings warnings?
This is all stock manipulation...WITH 94MILLION shares..that's 19% of all outstanding shares short on a company that is currently building a state of the art Operating System soon to be released. Shorts are doing what they do best create panic and negativity in this stock by paying numerous media outlets to post hundreds of pr's about the same thing over and over again...What do you think is going to happen?
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Again, I'll stipulate the company is in trouble, and that buying shares at $7 is still a big gamble.
That said, Einhorn bought at $14 and Watsa at $7. Both are generally considered experts, and yet, are invested in RIM.
"Short Interest is at 92 Million Shares.
That's what has changed.
They have short sold RIMM down to this level.
I don't know what they are thinking either.
If Volume finishes today around 10 Million Shares,
the average volume for the period is going to be around 17 million shares.
"days to cover" is going to spike should be around 5.5 Days.
Unless short interest went up again, which I see as a very real possibility.
Shorts just keep digging themselves a bigger hole. While RIMM has Billions in service revenue yet to come this year and has several new products scheduled for launch.
It is too early to write them off.
But I'd say there is more value here than they are getting credit for.
I hope RIMM's products will be a success, but there is no way to know.
This is the risk of the stock market.
Conversely I believe there is extreme risk on the other play. The short play.
RIMM is not going bankrupt anytime soon."
Nice to see that midnightbumbler has returned from his recent catatonic fit.
He came back right where he left off too, with his drivel about "huge" short interest.
Amazing---pathetic too--but amazing nonetheless.
RIMM has a limited potential. It's getting squeezed on all sides and has not, as of yet, mounted an effective counter attack.
The stock price will continue to trend down until it can demonstrate renewed customer appeal.
Lazaridis' empty promises exhausted the company's credibility. The promise of a future delivery of BB10 will not change things. RIMM has to show results.
RESEARCH IN MOTION Yes, this one may be a head-scratcher, considering that the iPhone seems to have eaten RIM’s BlackBerry for breakfast — and lunch. But with a marke value of $3.7 billion it is a relative bargain and could be had for four weeks’ worth of Apple’s spare cash).
Such a deal would instantly put Apple into the enterprise market, giving it access to corporate and government customers that require RIM’s highly secure servers. Apple could build access into RIM’s network directly into future iPhones and maybe even create an iPhone with BlackBerry’s famous keyboard, which for many of us would create the ultimate smartphone.
RIM’s relationships with corporate and government customers could be leveraged to sell other products like computers and iPads. RIM also owns QNX, a software that is being used in its next-generation BlackBerry devices. More important for Apple, QNX is used as an in-dashboard operating system, and it is already in 20 million cars, like Chryslers and Porsches.
Finally, there are RIM’s patents, said to be worth $1 billion to $4 billion alone, a virtual treasure trove for a company that is locked in brutal patent wars with rivals. Google paid $12.5 billion for Motorola Mobility last year, in part, to secure the company’s patent portfolio.
SPRINT Yes, the phone company. This might seem the most out-there idea. But it solves many of Apple’s biggest problems.
Such a deal would give Apple its own wireless network, which it could upgrade to become the ultimate high-speed wireless carrier in the country. It could eventually use the network to bypass the cable operators to deliver content directly to the home on multiple devices, including the product that everyone speculates is on its way: a TV device.
With a stock market value of $13.5 billion, Sprint can be purchased for a song. Apple could easily spend four times more than that — say, $50 billion — to build out the Sprint network and turn it into a showcase for the next generation mobile technology. Apple could still offer its devices on other carriers, but its premium product would exist on its own network.
Think about it: Apple service, Apple Stores and simple Apple pricing. That would revolutionize the business. And such an investment would force the other carriers to step up their game, which would only help Apple. Most compelling is the possibility of Apple owning the last mile into everyone’s home (wirelessly) and be able to offer televised content.
Why do these dummies think that a company can be purchased for its current stock price?
"But with a marke value of $3.7 billion it is a relative bargain and could be had for four weeks’ worth of Apple’s spare cash"
Wrong. With Prem Watsa and a few insiders owning such a large percentage of the company, there is no way this company will be sold anywhere near the current SP. Perhaps $20. Nobody is going to pay $20. End of story.