Tencent Technology News (macho) Beijing time on December 4, according to the United States "Barron Weekly" Online Edition recently published a column reporter Dimitra-Dave Tisi (Dimitra Defotis) article said that although RIM continues to drain BlackBerry Mobile Phone users, the company in the near future and no profit worries, and with the company's share price continues to fall, RIM is
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On Friday, a series of negative news made RIM an investment trap for investors once again.
On Friday, RIM not only lowered its earnings per share and third-quarter earnings forecast for the fiscal year 2012 but also announced that it would invest $ 485 million in pre-tax reserves for the third fiscal quarter to reassess the inventory of PlayBook tablets.RIM is working on a new round of marketing for PlayBook and plans to release its third-quarter earnings on December 15.
In regular trading on the Nasdaq stock market as of Friday's close, RIM's shares were trading at $ 16.77 per share, down 9.7 percent from an 11-week high, and down 76 percent from the company's 52-week peak of $ 70.54.
The value of RIM is still in
There could be potential acquirers willing to buy RIM at a price higher than its current share price, a move that could also dispel the anxiety engulfing the company's investors.RIM holds large amounts of cash and patents, not to mention its 70 million-plus BlackBerry user base. The company's current market capitalization is also close to $ 9 billion, based on the value of each BlackBerry user that brings to RIM about $ 128.While the $ 485m PlayBook tablet payout will put even more upward pressure on the company's share price, the book value of RIM's share price is also close to $ 18 per share.
RIM has lowered the starting price of the PlayBook to $ 199, and it's hard not to see any profit for the company, and the price will further affect RIM's profit margins. Amazon's new tablet Kindle Fire also starts at $ 199, and the tablet is indeed sought after by consumers. According to market research firm IHS, Amazon Kindle Fire sales in the fourth quarter will reach 3.9 million units, and will surpass all other competitors of Apple's iPad, the second-highest market share of the tablet.
Even if the takeover rumor can push the price of RIM to more than $ 20 per share, it is difficult to see which company in the market is willing to buy the business is in the steady decline of the old smartphone manufacturer. Microsoft has long denied the rumors of the intention to buy RIM, after the company has reached a smartphone alliance with Nokia, and equipped with Microsoft Windows 8 operating system, the smartphone will be available next year. Private equity firms with strong interest in the hyped RIM patent technology are more likely to be potential bidders for the company.
Profit-free
According to Tavis McCourt, an analyst at Morgan Keegan, the US investment firm, RIM can break even by selling 4 million BlackBerry phones per quarter, but it will need to maintain its base of over 45 million BlackBerry users over the next few years, and sell 7 million BlackBerry phones per quarter to be able to have better survival and profitability.
While RIM continues to churn out BlackBerry users, the company is able to continue to make a profit in the near future.RIM BlackBerry has sold more than 13 million units on average in recent quarters.McCourt also expects sales of RIM BlackBerry phones to reach 12.5 million by the end of February.
Not suitable for long-term investment
Brad Erickson, an analyst at Pacific Crest Securities, an investment bank focused on technology, said: "RIM said in a statement that it will develop a more aggressive marketing strategy around negative gross margin pricing for PlayBook.We believe this will only have a negative impact on the company's market value. Rim's share price may be well supported by investors in the near future, but we ultimately see it as a typical investment value trap. We believe that the reasonable price of RIM's share price should be between $ 10 and $ 12 per share.”
Barron wrote in April this year that he was optimistic about RIM's prospects and later acknowledged his own miscalculations. And a series of bearish news on Friday proved once again that the downward trend in RIM's shares will continue.RIM needs to add new users while preventing older users from opting instead to buy Apple iPhones and Google Android devices. And tablets and new smartphones are not enough to make the company accomplish both goals.
Nomura Securities, a leading investment firm, has concluded that RIM will be a technology company with long-term downturns. The potential takeover could temporarily keep RIM's share price flat. But just wait until the share price falls to a lower level, the smart bidder may be out. It's a war between businessmen and not for long-term investors to get into.
National treasure
Canadian industry minister Christian Paradis said in an interview with Reuters in New York on Friday that RIM is a Canadian jewel and deserves government support.
“I think the Canadian government has to support businesses like RIM, " Paradis said.”
Paradis declined to comment on the takeover rumors and declined to comment on whether the Canadian government would block a bid to buy RIM.
“First of all, I want RIM to prosper, " Paradis said. As for the (takeover) rumor, we have to look at what happened and consider whether it is legal.”
If the government of Canada decides that a deal to acquire a Canadian company fails to bring“net proceeds " to the country, the deal could be rejected.