1. 01itr's Avatar
    Top Rated US Mutual Fund Snaps Up RIM Shares

    I only included the parts relevant to RIM and the Fund itself, you can read all of the other stocks The Yacktman Fund picked up in the news article (too long to post the whole thing)

    The Yacktman Fund’s Donald Yacktman, the mutual-fund manager with the best record in the past 10 years, has boosted his holdings in out-of-favour stocks, including scandal-plagued media giant News Corp. and troubled computer-networking bellwether Cisco Systems.

    The manager of the $5.4-billion (U.S.) fund also initiated a big position in Research In Motion, maker of the beleaguered BlackBerry smart phone, and added to a stake in Hewlett-Packard, both of which have seen their shares slide this year. Yacktman made the changes in the second quarter, according to information from Morningstar and Bloomberg.

    The Yacktman Fund has risen 4.9 per cent this year while the benchmark S&P 500 Index is little changed. Over five years, the mutual fund has risen an annual average of 10 per cent, more than five times the pace of the S&P 500. That makes it the No. 1 mutual fund, a distinction it also holds over three, 10 and 15 years. But the Yacktman Fund doesn’t only protect investors from market downturns – it rockets in bull markets. In 2009, as the S&P 500 index jumped 26 per cent, the fund rose a staggering 59 per cent.

    That’s why investors have added more than $2.4-billion to the fund in the past year.

    Donald Yacktman started the fund in 1992 and his management team now includes his son Stephen Yacktman and Jason Subotky.

    The Yacktman Fund gets a “buy” rating and a five-star grade from TheStreet Ratings, which indicates the fund has an excellent track record for maximizing performance while minimizing risk. It won TheStreet’s 2011 Best Mutual Fund award for the large-cap core category.


    The fund bought 1.5 million shares of Research In Motion (RIMM-Q), initiating a stake worth $43.3-million during the second quarter, which is a 0.8 per cent portfolio allocation.

    The company is best known for being an early innovator of wireless-communications devices with its BlackBerry product line, but it has lost market share to Apple’s iPhones and Motorola’s Android line of devices.

    The Waterloo, Ont.-based company announced the layoff of 2,000 workers on July 25 as part of a “cost-optimization program,” whereas Apple has been hiring staff.

    Research in Motion has a market value of $13.1-billion and its shares have a forward price-to-earnings ratio of 4.7 versus the Standard & Poor’s 500’s 14.2.

    It had an annual average earnings growth of 53.4 per cent over the past five years, while its revenue grew from $300-million in fiscal 2003 to almost $20-billion in fiscal 2011.

    But its shares are down 49 per cent over the past three months and 57 per cent this year. Over the past three years its shares have averaged an annual decline of 41 per cent.
    08-04-11 07:50 AM
  2. lnichols's Avatar
    It's cheap, they have new product to sell in NA market, I think that the Q4 for them should be much improved because sales in US will pick up for OS7. Then follow into QNX handsets. Also hopefully some Playbook sales to governments. Stock is way undervalued at this time.
    08-04-11 07:58 AM
  3. kevinnugent's Avatar
    Oh, yeah, big investment.
    08-04-11 07:59 AM
  4. dentynefire's Avatar
    I'm sure they're not the only ones buying, but picking a bottom sheesh! Not a good time for the stock to be weak with the DOW loosing 500 today. Ouch!
    08-04-11 03:22 PM
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