|
 |
|
|
RIMM once traded over $140 / share, now its below $15 / share. |
|
|
Released on Friday, March 30, 2012, 9:45 PM ET
Pittsburgh, PA (SpeculatingStocks) - Research in Motion (NASDAQ:RIMM) was once the Apple and Samsung of the phone world. They had it all together and had a strangle hold on the business market. Their users were addicted to using RIMM's blackberry device. Now, only the most loyal haven't switched to the iPhone or Droid.
RIMM just reported Q4 earnings with revenue coming in at $4.2 billion, off $300 of Wall Street's expectations. Earnings came in at $0.80, a penny off analyst expectations.
Those are pretty good revenue and earnings numbers for a company trading at around a $7.5 billion market cap, but the thing is that their brand and technology platform has seriously degraded.
RIMM could eventually rebound back, but it's going to take Apple-like vision from their management. RIMM was great at one time, so it is possible again and the company is shaking things up within. RIMM is at a support level right now and it looks like the stock could see a spike especially with the possibility that RIMM may be looking for someone to buy them out.
RIMM announced that they are "exploring strategic options." Several companies are looking for the missing piece in order to compete with Apple on the smart phone and tablet front. RIMM could be a goldmine to the right company.
Several companies could fall even farther behind Apple if they don't manage to compete on the phone and tablet front. Some of those include Microsoft, Amazon, Facebook, HP and others. Now, these companies aren't doing awful by any means, but Apple could dig into any of their businesses due to all the strategic advantages that the phone and tablet markets are giving them.
Google also recently led the way by acquiring phone hardware maker Nokia last year. Software makers are realizing that they must control the hardware as well.
RIMM controls patents and lately patents have been important to companies who are using them to go after each other. The company also has about $2 billion on its balance sheet. RIMM appears to in fact be oversold right now.
Find more stocks on the SpeculatingStocks homepage.
Comments:
|
|
