1. avacomputers's Avatar
    RIMM fell $13.00 dollars today on news it missed Analyst Estimates.

    Sept. 25 (Bloomberg) -- Research In Motion Ltd. forecast third-quarter sales that fell short of analysts' projections, a sign the BlackBerry maker may have to sell more phones at lower prices to compete with Apple Inc.'s iPhone.

    Research In Motion fell the most in more than seven months in Nasdaq Stock Market trading after saying revenue this quarter will be $3.6 billion to $3.85 billion. Analysts on average estimated $3.91 billion.

    The company has cut prices of some products as it prepares to release new BlackBerrys later this quarter, co-Chief Executive Officer Jim Balsillie said yesterday on a conference call. RIM is up against rival devices from Apple and Palm Inc., both of which have lowered prices in the past few months, and a raft of planned phones based on Google Inc.'s Android software.

    "If you want to go mainstream, you have to be competitive with the market and lower prices," said Steven Li, an analyst at Raymond James Ltd. in Toronto. He cut his rating on the stock to "market perform" from "outperform". "It's clearly the lower average selling price that drove the sales miss."

    RIM, based in Waterloo, Ontario, fell $12.30, or 15 percent, to $70.76 at 9:51 a.m. New York time on the Nasdaq. It earlier slid as low as $70.09 for the biggest intraday drop since February. The stock had doubled this year before today.

    Sales Driver

    Higher-priced new versions of the BlackBerry Storm and Bold aren't going to come until later this quarter, which ends Nov. 28, so that won't help average selling prices much in the period, Li said. Cupertino, California-based Apple cut the price of its older iPhone 3G in half to $99 in July. Sunnyvale, California-based Palm, which released its Pre phone in June, reduced the price $50 this month to $149.99 and said it plans to introduce a cheaper device later this year.

    The BlackBerry Curve 8520, among the lower-priced products in RIM's smart-phone portfolio, is available at Wal-Mart Stores Inc. for $48.88 with a two-year service contract with T-Mobile USA Inc.

    "Gross sales are really what is going to drive these stocks forward," said Michael Yoshikami, chief investment strategist at YCMNet Advisors, which manages about $850 million in Walnut Creek, California. "You simply cannot just continue to get efficient, you have to grow your business, and that's clearly what RIM missed on," he told Bloomberg Television.

    The company's third-quarter earnings forecast of $1 to $1.08 a share missed some estimates as costs rose to develop and market new devices. Analysts on average predicted $1.06 a share.

    Average Selling Price

    "When expectations ramp up as they have with RIM, that's a disappointment," said Matt Thornton, an analyst at Avian Securities LLC in Boston, who cut his rating on the stock to "neutral" from "positive."

    Research and development costs in the second quarter jumped 30 percent to $235.6 million, while sales and marketing expenses rose 13 percent to $429.7 million, RIM said in a statement.

    Net income in the period ended Aug. 29 dropped 4 percent to $475.6 million, or 83 cents a share, from $495.5 million, or 86 cents, a year earlier, RIM said. Sales rose 37 percent to $3.53 billion, missing the average $3.63 billion estimate of analysts.

    The average selling price for the third quarter will be about $320, Balsillie said. The price was about $345 in the second quarter, Chief Accounting Officer Brian Bidulka said on yesterday's call. Both were below the first quarter's $357.

    The decline can be partly explained by the popularity of the cheaper BlackBerry Curve 8520, Balsillie said.

    "Our goal is to get more and more mainstream and get more and more volume," Balsillie said. "This is kind of a land grab."

    Phone Shipments

    RIM shipped 8.3 million devices last quarter and added 3.8 million net new subscribers. Mike Abramsky, an analyst at RBC Capital Markets in Toronto, predicted RIM would ship 8.7 million devices and gain 4.1 million subscribers.

    Apple, based in Cupertino, California, sold 5.2 million iPhones last quarter.

    Gross margin, the percentage of sales left after production costs, narrowed to 44.1 percent from 50.7 percent in the second quarter of 2008. RIM forecast a third-quarter margin of about 43 percent.

    Sales of smart phones have held up better in the recession, climbing 27 percent worldwide in the second quarter, according to Stamford, Connecticut-based Gartner Inc. The broader mobile- handset market dropped 6.1 percent.

    RIM had 18.7 percent of the global smart-phone market in the second quarter, second only to Espoo, Finland-based Nokia Oyj, according to Gartner. Apple was third with 13.3 percent.

    -- With assistance from Crayton Harrison in Mexico City, Carol Massar and Matt Miller in New York and Simon Thiel in London. Editors: Lisa Wolfson, Nick Turner

    Posted from my CrackBerry at wapforums.crackberry.com
    09-25-09 12:39 PM
  2. scorpiodsu's Avatar
    Yeah I hope this won't be a trend for RIM. But at the same time I am not surprised. They keep putting out the same devices and just renaming them. I bet all the fan boys around here are quick to post this one. But they sure would post "Curve is the best selling phone of the quarter"
    09-25-09 12:41 PM
  3. Reed McLay's Avatar
    Analysts see opportunity in RIM dip - The Globe and Mail

    Analysts see opportunity in RIM dip

    The Canadian Press, Reuters and Globe and Mail Update
    Last updated on Friday, Sep. 25, 2009 11:53AM EDT


    Research In Motion Ltd. (RIM-T75.60-14.56-16.15%) slumped Friday after the BlackBerry maker disappointed investors with quarterly results, but some analysts suggest the dip could be a buying opportunity for investors.

    ...
    Despite the slip, Canaccord Adams technology analyst Peter Misek recommended buying RIM's shares while they've had the wind knocked out of them.

    “We maintain our long-term positive outlook on the stock, particularly with a series of impressive new product launches on the horizon,” Mr. Misek wrote in a note.

    Mr. Misek rates the company a “Buy” with a target price of $110 (U.S.).
    ...

    RIM profit fell to $475.6-million (U.S.) or 83 cents a share in the quarter ended Aug. 29, compared with $495.5-million or 86 cents a year earlier, though the latest quarter included a charge of $112.8-million related to the settlement of a patent dispute.
    Lets see now, $475.6 + 112.8 = $588.4 Million, an increase of 18.74% over the last year. Respectable in anybody's books.
    09-25-09 12:43 PM
  4. avacomputers's Avatar
    I see opportunity also. I think I will grab some at this price. Even if it goes down a bit more. It will be sure to go up again. Rim is here for the long haul.

    Posted from my CrackBerry at wapforums.crackberry.com
    09-25-09 12:47 PM
  5. FloridaDude's Avatar
    I am glad I saw this thread. I am contacting E-Trade right now.
    Last edited by FloridaDude; 09-25-09 at 01:01 PM. Reason: spelling
    09-25-09 12:56 PM
  6. Reed McLay's Avatar
    Research In Motion

    Research In Motion and Visto Corporation Sign Definitive Agreement to Settle Outstanding Litigation

    July 16, 2009

    Waterloo, ON and Redwood City, CA - Research In Motion Limited ("RIM") (Nasdaq: RIMM; TSX: RIM) and Visto Corporation ("Visto") announced today that they have entered into a definitive agreement to settle all outstanding worldwide patent litigation between the companies.

    The key terms of the settlement involve RIM receiving a perpetual and fully-paid license on all Visto patents, a transfer of certain Visto intellectual property, a one-time payment by RIM of US $ 267.5 million and the parties executing full and final releases in respect of all outstanding worldwide litigation.

    The settlement is expected to be completed during the week of July 20, 2009 and is subject to certain closing conditions.

    Based on preliminary analysis, RIM expects the majority of the payment to be expensed as an unusual item in the second quarter of fiscal 2010, with the remainder being classified as an intangible asset. Based on this analysis, RIM expects to report Q2 results that reflect U.S. GAAP earnings and earnings per share, as well as adjusted earnings and earnings per share, which would exclude the amount expensed as an unusual item.

    Further terms and conditions of the agreement are confidential.

    ...
    Certainty in the marketplace is easily worth a $100 Million bucks.

    09-25-09 01:21 PM
  7. Radius's Avatar
    Well they are certainly poised for big things. During the economic downturn they scooped up a lot of talent for R&D while everyone else was letting them go. They probably have mass market products in the pipeline as we speak, it just depends how long it takes to finish them now.
    09-25-09 02:12 PM
  8. toeknee76's Avatar
    sounds like a time to buy!!
    09-25-09 02:20 PM
  9. Coruptyed's Avatar
    Thanks for the read . Glad I don't deal with stocks too much to keep up with

    Posted from my CrackBerry at wapforums.crackberry.com
    09-25-09 02:28 PM
  10. Jeff_T's Avatar
    Enjoyed checking out the portfolio today and seeing that 17% loss for RIMM. I only recently took a long position in RIMM (about 2 months ago) so it wasn't a huge hit as I'm pretty much back at even now, but I def see them doing well in the next year and beyond. They have good financial strength, ratios, etc, so it's def a keeper. I'd concur with the buy rating, seems like a great deal. May actually pick up some more shares soon.
    09-26-09 01:05 AM
  11. cadsystems's Avatar
    I sold my RIM and Google stock back in July. I made some money on RIM, wish i would have held on to my google stock a little longer. But a win is a win.
    09-28-09 11:16 AM
  12. ridesno159's Avatar
    I am glad I saw this thread. I am contacting E-Trade right now.
    Same here. Sounds like a great time to increase my stake in the company.
    09-28-09 11:31 AM
  13. i7guy's Avatar
    There are a lot of people bullish on RIM, they'll do just fine. Every stock in the last year has been on a roller coaster and a jittery investment market has caused a stock swing with no provocation. I mean how many companies have not met forecast in the last few years?

    edit - the people who "hate" RIM because they have such a commanding lead will be like chicken little.
    Last edited by i7guy; 09-28-09 at 01:42 PM.
    09-28-09 01:10 PM
  14. berrywell's Avatar
    Be patient kids. Give it another month. Mid November, then buy.
    09-30-09 12:56 AM
  15. HellKatzX's Avatar
    No way, buy now, when the Storm 2 is released things will pick up
    10-04-09 06:58 AM
  16. PopularStranger's Avatar
    probably related to the tour problems and also the release of the 3gs
    10-04-09 10:05 PM
  17. pleasetellme's Avatar
    So do you folks think RIM stock will get bumped up when they announce these two new phones? Or if sales are good for these upcoming models then the stock will go up after actual #s come out?

    I am keeping in mind RIM isn't just about handset sales but also about network usage which they seem to be getting a good grasp on in some emerging markets, Indonesia for example.
    10-05-09 01:56 PM
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