Big News from RIM but stock price dropped?

[kemj]

As of now (the time as I'm posting this) RIMM stock price has DROPPED in more than 6%!! I would have thought of a major boost of their stock for today... :S Something like 10, 15, 20% of increase :/

[undone]

got to cover the shorts

[OMGitworks]

Originally Posted by undone

got to cover the shorts

Please.....

[JohnEnglish]

Everyone is taking a wait and see approcach. There is no quick fix to RIM's current problems and the impact of the new CEO won't be fully known for a few months.

[scalemaster34]

Originally Posted by kemj

As of now (the time as I'm posting this) RIMM stock price has DROPPED in more than 6%!! I would have thought of a major boost of their stock for today... :S Something like 10, 15, 20% of increase :/

20% increase because they were forced to change management?? While in a way it is a positive move - at least they realize there is a problem, it really is still is a negative for the company.

RIM could announce that BB10 Devices will go on sale next week and they would not get a 20% increase in stock value at this point.

[Lead_Express]

I think this is investors being rightfully cautious. Nobody knows whether this change will be good, bad, or indifferent. All hints point to this new CEO having a strategy in lockstep with Lazaridis and Balsillie and, with the dynamic duo still having their fingers in the pie, it'll be a hard sell.

[crack_me_silly]

I would have thought with the co-ceos stepping down, the stock would have gone up...but apparently the market is more upset about the fact that the new ceo has suggested that a buyout is off the table. After all, RIMM was up 5% before the conference call where Thorsten spoke.

Remember also, the stock did have a very large run up over the last month.

[kemj]

Originally Posted by scalemaster34

20% increase because they were forced to change management?? While in a way it is a positive move - at least they realize there is a problem, it really is still is a negative for the company.

RIM could announce that BB10 Devices will go on sale next week and they would not get a 20% increase in stock value at this point.

You actually used a word that would suggest that boost. "forced"
Because they are finally doing what most analysts, investors and consumer wanted, isn't the stock supposed to rise because of the good expectations the change could mean?

[undone]

The valuation is viewed around this level. So its going to float up and down around this point until something 'breaks' either way.

The next thing up is PB 2.0. Expect:

Fail to deliver PB 2.0 in Feb, drop
Deliver PB 2.0 flat or small tick up.

[silversun10]

the market was apparently pricing in a take over at a premium and not a muddle through scenario

[vrs626]

No surprise....Mike and Jim are still heavily involved. Head of the "Innovation Committee"??? Please.

[Doc Z]

Amazing. Only RIM would take such a hit on stock price upon a relatively major and seemingly positive change in the company.

[Palmless]

Originally Posted by kemj

As of now (the time as I'm posting this) RIMM stock price has DROPPED in more than 6%!! I would have thought of a major boost of their stock for today... :S Something like 10, 15, 20% of increase :/

Look at it as the world sees it, not from a CB "OMG! RIMM FTW! I really think this will turn everything around!" point of view.

Since Friday:

A - Founders and co-HalfCEOs led out practically at gunpoint.

B - Deep insider apologist former co-HalfCOO hastily appointed, implying only one of two things:

1. The board could not find a credible candidate willing to take the job
-or-
2. (Worse) The board viewed Heins as a credible candidate

C - First night on the job, Heins says everything is great at RIM. No need to change anything.

D - Apple and others announce earnings later this week.

Given the events above, be thankful RIMM is in double digits today.

Originally Posted by Doc Z

Amazing. Only RIM would take such a hit on stock price upon a relatively major and seemingly positive change in the company.

The world sort of agrees that it was a major change, but you will find very few able to spin A through D above as positive.

[Doc Z]

Insightful as always Palmless. I wish the company would WAKE UP.

[1magine]

Why is the stock down 6%. Really? really - Really? The guy headed up RIM's product development. He is just as - if not more responsible than the 2 who stepped down for RIM's meteoric fall. And right out of the gate he says - he's staying on the path.

What could he have said - "we're sorry." "we screwed up" "We continually produced less than optimal products, with virtually insignificant incremental updates on a regular basis." "we have over promised and under delivered for more than 2 years." "The fact that QNX is not on handhelds is because we can not get it to work with BES" "This is my fault" "I am going to fix this by......" "I am ordering the immediate full investment in capital to accomplish our goals and get QNX out on handhelds and working on BES ahead of schedule"

Something like that might work. But "no nothing is really wrong" "I was able to do what I wanted as head of product development" "No real changes are coming".

Sorry, But for any real investors, for any investment manager that wants to keep their job - that's not cutting it.

In other news, 3 more 'A' list International law firms announced this morning that they too are moving away from a BES only solution.