In a recent Investment Contrarians article, editor George Leong notes that faced with a crippling decline in its market share for smartphones and a nearly non-existent market and demand for its tablet “PlayBook,” Research In Motion (RIM) is in serious trouble. August 16, 2012
In a recent Investment Contrarians article, editor George Leong notes that faced with a crippling decline in its market share for smartphones and a nearly non-existent market and demand for its tablet “PlayBook,” Research In Motion (RIM) is in serious trouble. Leong believes that with only $1.9 billion in its coffers and facing declining cash flow, RIM is in its own financial crisis.
“Since the company first started to show cracks after reporting weak results and constantly delaying the release of its new ‘BlackBerry,’ I questioned the company’s ability to execute,” says Leong.
This horrible execution forced the company’s two co-founders, Jim Balsillie and Mike Lazaridis, to resign, claims Leong.
“In came new CEO Thorsten Gerhard Heins, but so far it’s been the status quo,” he observes, as RIM has already delayed the launch of the next-generation BlackBerry.
The reality is that without strong leadership and vision, a company cannot survive and fend off rivals, states Leong.
RIM is estimated to lose $1.50 per diluted share in fiscal 2013 (February month-end) and another $0.61 per diluted share in fiscal 2014, which is a combined loss of over $1.1 billion, reports Leong.
The Investment Contrarians editor also mentions that RIM recently announced it was slashing about 5,000 jobs from its global workforce by the end of fiscal 2013. He also reports that there is now unconfirmed speculation swirling that the company may cut an additional 3,000 jobs in an effort to cut its operating costs by over $1.0 billion.
According to Leong, only time will tell, but he thinks it will only be a matter of a few quarters (and possibly more delays) before RIM’s ending will be known.
To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/8/prweb9798077.htm