1. BennyX's Avatar
    This tidbit popped up on Google News Today.. What's ur thoughts on it? I don't think it's inaccurate..

    Research in Motion Won't Likely Be Sold - Barrons.com
    02-01-13 11:53 AM
  2. houshinto#IM's Avatar
    It's been undervalued for a long time. It went up prior to the launch but the shorters were successful in dropping the stock and will now benefit from buying the shares at a cheaper price for even more profit.

    That's Investors and Analysts for you. *sarcasm
    MoolahMitch likes this.
    02-01-13 11:57 AM
  3. cjcampbell's Avatar
    Seems to be a subscription article only... can you copy and paste the content please.
    02-01-13 12:04 PM
  4. BennyX's Avatar
    Credit Suisse

    Despite recent enthusiasm for Research in Motion's new BlackBerry 10 devices, we see limited scope for traction in the hypercompetitive smartphone market.

    Furthermore, we believe that RIM's (ticker: RIMM) major business model change in services will result in a significant decline to this high-margin revenue stream, driving operating losses and potential cash burn.

    We lower our fiscal 2014 and 2015 earnings-per-share estimates to losses of 78 cents and $1.73, respectively, and downgrade RIM to Underperform from Neutral with a $10 price target, down from $11.

    We see RIM shipping some 17 million and 15 million BB10 devices in fiscal 2014 and 2015, respectively (representing a smartphone share of 1% to 2%). First, we believe the specs of the Z10 and Q10 models are only on par with other smartphones. Second, the portfolio is aimed at the high-end consumer (long term evolution (LTE) compatible and above-$400 list) and will struggle against two formidable competitors of Apple (AAPL) and Samsung [of Korea], given the company's weaker compute portfolio. Third, BB10 with 70,000 apps at launch is meaningfully behind Microsoft (MSFT) Windows Mobile, Apple iOS and Google (GOOG) Android.

    Business model change and services are on an accelerated decline driven by three factors: 1) We see a declining subscriber base as churn increases given the lack of competitiveness of BB7; 2) We believe RIM will struggle to drive any meaningful average revenue per user for the BB10 user base; 3) We see pressure on the existing fees for the BB7 base given the desire from carriers to renegotiate. We see the services revenue stream declining to $3.0 billion and $2.3 billion in fiscal 2014 and 2015, respectively, from $3.9 billion in fiscal 2013.

    While RIM could be sold, at an enterprise value of $5.3 billion, this is unlikely given the size of the transaction. Additionally, we question the quality of the underlying intellectual property rights and see limited value in its network operations center.

    Our net-asset-value estimate for RIM is about $3.1 billion (40% below current market-cap levels), and requires the acquirer to shut down its hardware business.
    02-01-13 01:30 PM

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