August 2, 2011 | In: Technology

Will RIMM Recover?

I see him everyday, he looks sadder and sadder, yet still hopeful, he checks Google finance to see RIMM’s latest price, he then logs in to his investor’s account, maybe Google is wrong. To his horror, Google is right, RIMM has reached another new low.

I am talking about one of my work associates. The guy has a few thousand shares of RIMM which he bought at the ridiculous price of $80. His loss is now over $200,000 (yes, that’s two hundred thousand dollars). The guy never sold the stocks when he had the chance, instead, he kept them, thinking that the RIMM’s catastrophic fall is only a blip in its long term charts. Obviously he is wrong, he knows it, but he doesn’t want to admit it. He always asks this question loudly “Will RIMM ever recover?”.

I feel sorry for him, and I feel more sorry because I know that RIMM as a stock and RIM as a company are both finished. RIMM can never reach the $50 level again, never mind the $80. In fact, I think that RIMM will trade in the single digits by the end of the year (but I would not short it). Unless a miracle happens, like if RIM comes up with the next iPhone, then the company’s intrinsic value will worth nothing by the end of 2013. Too much competition, mediocre products, and wrong strategies are the main reasons for RIM’s imminent death.

RIM’s executives are apparently no longer oblivious to the fact that RIM is just two steps from its grave, and they’re trying all kinds of CPRs to revive it, but as the saying goes, “Stick a fork in it, it’s done”.

1 Response to Will RIMM Recover?

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RIM’s Is Worth More than Its Market Cap « Fadi El-Eter

September 22nd, 2011 at 9:07 am

[...] thought it was too expensive, that the company has no future, that it will go bankrupt soon, that it won’t recover, etc… I did say though, at one point, that RIM could be a target for takeover. I think all [...]

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