- CrackBerry User
- 27 Posts
Did I make the right decision
My wife told me to put up or shut up, so I put up. I just bought 100 shares of RIM stock - while it won't change things much for RIM, it's an investment for me (so clearly my post is now biased). So why go against the current investor sentiment?
- For starters, too many investors are greedy short term thinkers looking to make a quick buck - and my gawd, are they wrong a lot!
- Two founders who don't want to see their baby die - and who have a lot of fight left in them (they are Canadian after all - and they have great support from great minds around the world)
- A smooth release of some pretty solid products not included in thier last set of numbers - I have the 9900 - fantastic product.
- The QNX platform is solid, and only getting better (I have the PB 64GB version)
- TAT (enough said)
- Investment in Cloud and gaming organizations (ie. purchased them at a reasonable cost using cash - they still have no debt)
- When the world's media outlets make a BB outage front page news - there's a reason for it (if it were dieing there'd be no news to report)
- If Apple and the Android platforms are truly best in class, why do they all still feel the need to compare to BB products - and why so many trolls on this site putting down BB?
- While RIM does a $hitty job marketing, true die hards (just like true Android and Apple die hards) realize the value that their product brings to them is what matters - RIM knows it's core customers - and it is evolving)
- No one can copy RIMs security capabilities - no one (think Barrack Obama)
- BBM music is more clever than most people realize - it mixes a gaming element with social networking and human curiosity - just look at how many people want to connect in the forum
- The company is cash flow positive - in spite of it's marketing efforts
- BB products primary focus is communication - it's still is best in class at that.
- It's one of only two fully integrated solutions on the market - and it's the only secure one. Think about this for a minute (Apple's the other one - and it's not nearly as secure). Both Android & Microsoft make operating systems, they rely on vendors for the hardware. This means the only two companies with total control over their platforms are RIM and Apple. What differentiats RIM from Apple here, and is truly unique - is giving customers access to the open source Android code as well.
Most of all, I believe in Karma (I'm a little strange in this regard as I'm a business person first and foremost). RIMs founders have invested a lot of money into social causes around the world. People who benefit from these things often feel a sense of loyalty. So while RIM has made it's share of mistakes, it's also owed up to its mistakes and is doing something about them. It still has a lot to learn, but there's now 100 more shares sitting with a long term, optimistic customer/investor - I'll I ask is they do their best!
- CrackBerry Addict
11-03-2011, 01:52 PM #3
- 923 Posts
Yes you did.
It is unlikely that the stock will go much lower as the assets alone at RIM are actually higher in book value when in reference to the stock price.
Worst case scenario and RIM is bought out, the buyer will likely offer more per share then you paid for it so you will not take a loss.
Those who think RIM stock still hasn't bottomed out are ignorant of how the markets work and how business's operate financially, or are just plain vindictive and want the company to go bankrupt for a "fire sale".
Hasn't happened, and if they at least continue to come out with products that generate them profit, will not happen.
- 11-03-2011, 03:08 PM #4
Regardless of the financial situation; from a technology position I still think RIM is a good play in relationship to the other manufacturers. I will be voting with my dollars on Sunday when I pick up a new BB.
- 11-03-2011, 04:29 PM #5
I think RIMM is a fine investment for the short term. I predict they will rise in stock value but never dominate the U.S. market again-at least for the foreseeable future. I think you will make money on this. Just don't count on ever seeing figures like they used to be a few years ago.
- CrackBerry User
11-03-2011, 07:18 PM #6
- 32 Posts
I think I'm going to go with a Steve Jobs quote here - "you're holding it wrong."
I'm thinking about waiting until it recovers a few dollars, then when I think it peaks near quarter end, short away. It seems like they can't win no matter what they say, and every time they roll out quarterly results, the stock takes a beating.
I do get kind of nervous doing it this coming quarter since they have the new phones out, but maybe I'll just hedge my bets with a few call options and do it anyway.
Posted from my CrackBerry at wapforums.crackberry.com
- CrackBerry Abuser
11-03-2011, 09:57 PM #7
- 348 Posts
I too bought a few shares two weeks ago and I think RIM has a lot more to offer. I don't think it will dominate the mobile game again but I think (and hope!) that people will be thoroughly surprised by the offering of BBX-powered smartphones.
11-03-2011, 10:08 PM #8
- 56 Posts
Obama has an iPhone now.
I don't think the CEOs being Canadian has any positive bearing on this. Think of Michael Cowpland at Corel, think of Nortel, these were Canadian companies too, and they both let market leading positions slide away.
I do hope the shares work out for you, just wanted to offer some perspective that might inform your decisions going forward.
11-03-2011, 10:43 PM #9
- 2,573 Posts
As for Android, perhaps one or more of the OEMs have done something, but it certainly wasn't memorable.
- 11-03-2011, 11:20 PM #11
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
- 11-04-2011, 01:52 AM #12
We will see....... If RIM continues their legacy then your stock can go blowing high! If it fails then its a waste. Time will tell..........
I hope you made the right choice!!!
Posted from my CrackBerry at wapforums.crackberry.com
- 11-04-2011, 04:43 AM #14
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 .
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; 11-04-2011 at 04:55 AM.Nokia 5100 > Nokia 3390 > Motorola T720i > Siemens M55 > Sony Ericsson k700i > Nokia N73 > BB Pearl 8110 > BB 9000 > BB 9700 > BB 9900