The downward spiral of Research In Motion continues. This past Friday, shares took a 14.4% hit on Friday on the TSE after the company warned investors that profits would be lower than expected:
The primary reason behind RIM’s lower forecast is the company’s transition to a new line of high-end smart phones, which RIM is expected to unveil during its annual conference in Orlando next week. Those products are delayed by a matter of weeks. RIM said Thursday that it will regain those sales in the rest of the fiscal year, and hasn’t lowered its full-year profit guidance.
Of course, there were many who didn’t buy this:
Mike Abramsky, an analyst with RBC Dominion Securities and previously one of RIM’s biggest boosters, cut his price target for RIM shares from $90 to $55 (U.S.). At least three other analysts also chopped their outlook on RIM shares. In a note to clients, Bernstein Research analyst Pierre Ferragu wrote that RIM management “recognized BlackBerry was suffering from competition in the U.S. for the first time last night.”
When your biggest supporters turn against you, you’re screwed. Or at least in very deep trouble. Face it, RIM is not reacting well to competition from Apple, Google and others. It also likely doesn’t help that reaction to the Playbook wasn’t Earth shattering. Oh well, Blackberry World is coming up this week. At that event they have the chance to hit something out of the park. If they don’t do that, you can start writing the obituary for RIM.
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This entry was posted on May 1, 2011 at 2:58 pm and is filed under Commentary with tags RIM. You can follow any responses to this entry through the RSS 2.0 feed.
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RIM Shares Dive
The downward spiral of Research In Motion continues. This past Friday, shares took a 14.4% hit on Friday on the TSE after the company warned investors that profits would be lower than expected:
The primary reason behind RIM’s lower forecast is the company’s transition to a new line of high-end smart phones, which RIM is expected to unveil during its annual conference in Orlando next week. Those products are delayed by a matter of weeks. RIM said Thursday that it will regain those sales in the rest of the fiscal year, and hasn’t lowered its full-year profit guidance.
Of course, there were many who didn’t buy this:
Mike Abramsky, an analyst with RBC Dominion Securities and previously one of RIM’s biggest boosters, cut his price target for RIM shares from $90 to $55 (U.S.). At least three other analysts also chopped their outlook on RIM shares. In a note to clients, Bernstein Research analyst Pierre Ferragu wrote that RIM management “recognized BlackBerry was suffering from competition in the U.S. for the first time last night.”
When your biggest supporters turn against you, you’re screwed. Or at least in very deep trouble. Face it, RIM is not reacting well to competition from Apple, Google and others. It also likely doesn’t help that reaction to the Playbook wasn’t Earth shattering. Oh well, Blackberry World is coming up this week. At that event they have the chance to hit something out of the park. If they don’t do that, you can start writing the obituary for RIM.
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This entry was posted on May 1, 2011 at 2:58 pm and is filed under Commentary with tags RIM. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.