RIM: "Clean up this mess NOW!"
A 20% decline in the stock price sends a very bad signal to stakeholders. They will rightfully ask, "why invest / develop now? Let's see if they are around in 12 mos before I do that." Problem is that everyone will be waiting for everyone else. RIM's rising stock price was a positive signal - this morning, Thor referred to the rising stock price as investors rising confidence in BB10. So Thor, how is everyone suppose to interpret a 20% decline in a single day? Thor, you failed to stop the bleeding - you were not specific and you have not earned the privilege of being vague (i.e. 'licensing our mobile computing platform to others'). What must you do?
1) Hold an analyst day and explain the numbers to people. Help them make knowledgable projections. Show them how MDM revenues and higher ASPs will offset declining service revenues.
2) Announce new services - if you are doing something with the autos, now is he time to tell people. (The QNX stuff doesn't count - you hardly get paid for that)
3) Recruit more investors. Why have you been unable to win back David Einhorn?
4) Fire your Head of IR. That incompetent moron hasn't got back to me eventhough I made a request 24 months ago.
Thor, you risk underperforming if you do not actively manage sentiment.
Kevin, UMI's piece on service revenues sucked. All he said was "this is a problem I have been worrying about". Thanks for that Chris. Let's get some number crunchers on this forum who can explain what is really going on here. Goldman and Bernstein think the market is overreacting - let's get someone who can show (using numbers) why this is the case.
Happy holidays everyone!
RIM: "Clean up this mess NOW!"
The stock market till rim released the devices will be up and down and will be 3 months after as well.
Just investors screwing with making profits.
RIM: "Clean up this mess NOW!"
Like it or not, RIM ultimately answers to its shareholders. If this guy really sank in such a large sum into rim, it's definitely understandable although no one can deny that rim's stock price is going to remain volatile until the future of the company is more certain. the more information rim hides, the more volatile the stock will be and the more pissed off people will get. they have to draw a fine balance between keeping the surprise factor and keeping the stock stable and if they are unable to do so, they can only blame themselves if the stock tanks and in an extreme scenario, someone attempts a hostile takeover.
Sent from my BlackBerry 9900 using Tapatalk
RIM: "Clean up this mess NOW!"
I am in a way a fanboy but at the same time recognise you need to look at things more objectively if you want to invest.
Although I am confident RIM will be alright in mid or long terms but I cannot help feeling the CEO could have done better in delivering the message. What the OP said has certain merits if you look at it from pure investor's viewpoint.
RIM cannot risk over 20% drop, warranted or not, like that at critical time like this.
Sent from my BlackBerry 9800 using Tapatalk