- 06-29-2012, 03:03 PM #27
Last edited by rcm1301; 06-29-2012 at 03:07 PM.
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06-30-2012, 11:57 AM #30
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- 06-30-2012, 12:07 PM #31
The $2.2bn will start to get drained as they have to pay off the 5,000 people who lost jobs (it costs a lot of money to lay people off) and if revenues continue to drop while they are trying to cut expenses then the money has to come from somewhere. The bank. The good news is no debt, not that it would be easy to borrow in this market.
Unfortunately for some, the combination of no debt and money in the bank makes them attractive to look at as a takeover. But there are too many issues with that...
I do not believe RIM will file for bankruptcy, but a significant change in ownership/partnerships could very well happen.
- 06-30-2012, 04:08 PM #32
You cannot "drop stocks into the market" you have to sell them. There are two sides to any trade. This is why its called a market.
The only cause of bankruptcy is owing creditors and not being able to pay them when you are required to.
Shareholders are not creditors, they are partial owners.
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07-02-2012, 06:57 PM #34
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07-02-2012, 10:09 PM #35
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Revenues on the operating (NOC) side are relatively stable. Manufacturing costs are being brought down by terminating agreements with manufacturing partners like Celestica. The goal is to bring costs down by $1bln a year, and that is possible. It will take cutting, but it can happen.
Once they've got those costs cut, yes, RIM can survive for quite a while. For a couple of years, anyway, as long as there are active subscribers. They could probably survive until Q4 next year without new product, but it's an open question how the market would actually receive whatever new product finally showed up then.