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You're not doing anything wrong. In fact, I'd say you did something good.
You bought a solid corporation, who is the leading smartphone in emerging markets (Malaysia, Indonesia, India, China, etc.), and you bought it low. You bought more shares than you normally would've gotten with your money, and there's no doubt in my mind RIM stock will go back up, especially given their dominance in other countries. They're just going through the motions of the cycle...
It makes perfect sense to me. Give yourself a pat on the back
11-03-11 11:20 PM - That's what I heard when the stock was still $20, then it dropped to $19 and I still heard that it was the bottom.
I'd also like to know where it says that BlackBerry is the leading smartphone in China. Even if this were true, I've noticed a huge demand for iPhones since the 4s came out. Once these countries develop their own economies and their incomes increase, BB will become increasingly irrelevant when they can afford other phones. After all, when there's a 42/52 (I'm quoting a sample of middle class Indonesians in a restaurant according to the short documentary by crackberrydotcom), they'll start wanting to be different and wanting more than what the other 41 people in a restaurant have already.
I doubt it will go up much more than it is until there are drastic changes, like an impressive QNX and BBX product line and road map. There's just too much uncertainty with where this company is going. With so many key personnel having left the company (I believe the product manager of the PlayBook left for Samsung?), there's nothign to say that the co-CEOs wouldn't do a "golden parachute and leave shareholders hanging with a shell corporation if push comes to shove.
However, I still think the drop in value is just the market reevaluating the company as a growth stock rather than a blue chip company. There is still so much potential in this company, but the company still has yet to deliver results. It also seems that it's strategy has shifted out of NA and into the Asian markets. That's a growth strategy, and they haven't put as much attention to the NA market (which I think is why we've been left hanging since they've been occupied).
I doubt the company will be valued very much if it was purchased. Google has already considered and set in motion purchasing Motorola Mobile's patents, which would mean less of a demand of RIM's patent portfolio. There's a lot of stuff that could happen with RIM if it does get bought out, so I'm not going to outline anything.
I agree with the comment that RIM will probably not be worth as much as before, but who knows?
As for returns from your stock, it's hard to say where it'll go with it. Just make sure that your returns will need to cover your commission fees and taxes you've already paid or will have to pay, otherwise you'll lose money (100 shares isn't a whole lot).
Good job with supporting RIM though
Edit: They actually have debt. They have nearly doubled their current liabilities based on product replacement and warranties, derivative liabilities and other stuff. Also, to cover their liabilities, their net cash flows have actually gone down. Also, they still have some assets they need to recover from Lehman Brothers Holdings in Europe plus about 30 lawsuits going on as both plaintiff and defendant. I just did a project on RIM
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Actually, the reason why Android and Apple are compared to BB is because BB is still a smartphone and it will be until it exits. It's currently 5th according to some news sources. Security is based on the certifications, but unless you're an enterprise user considering these things would work best when assessing IT or internal controls for businesses. QNX and TAT still have a lot to prove.
On your note about being fully integrated: it worked to Android's advantage to saturate the market with their cell phones, and by focusing on its operating system while giving a lot of support for developers and hardware manufacturers. It's about being open minded.Last edited by rcheung135; 11-04-11 at 04:55 AM.
11-04-11 04:43 AM
