RIM hits lowest price since 2003

RIM hits lowest price since 2003

Summary: RIM has dropped to a new low: less than $10 a share on the Nasdaq, its lowest point in just shy of a decade. Will the free-fall ever end?

TOPICS: BlackBerry

This is the sort of day Research in Motion had: a bad one.

The BlackBerry maker is now trading at less than $10 a share. It dipped as low as $9.57 at around lunchtime but only marginally improved in the last few hours of trading.

RIM closed today at $9.65 per share --- more than 5 percent down from market open. It hasn't been this low since December 2003.

Its market cap on May 29 was $5.89 billion when the company halted trading on its stock on the Nasdaq to prevent further downward motion. It now stands at $5.04 billion at market close on June 4.

To say that it was close to reaching the $78 billion mark five years ago, it doesn't take much working out to see how far the once-proud smartphone maker has fallen since.

RIM's shares have fallen more than 30 percent for the year to date, and more than 75 percent over the past twelve months.

The smartphone giant has been in free-fall since October, around the time its data network suffered a global outage that spanned four days. More than 30 million people were affected by the outage, which led to RIM losing $54 million --- or $40 million after tax.

Last week was the tipping point for the company after it said it expects to post a fiscal first quarter operating loss. In short, RIM is no longer a profitable company and has no option but to start slashing and burning whatever it has in a bid to keep the fire going.

But RIM has at least $2 billion in cash at its disposal. RIM will survive the month, and likely the month after that. The company will start eating into that pot of cash reserves quickly because there are operating expenses it needs to pay. If it cans between 2,000--6,000 employees, it may give RIM more time.

Image credit: Google Finance.


Topic: BlackBerry

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  • BB must call android to the rescue

    and also make patent grants to FOSS to lure developers.
    The Linux Geek
  • Now who saves RIM?

    Will MS do it again? This is very similar to the position that Apple was in when Bill and Steve saved the company.
    • Bill and Steve didn't save Apple

      Steve Jobs saved Apple, by killing off the clones and refocusing the company. A myth perpetuated by the disciples of Microsoft, is actually untrue. $150 million in non voting stock, did little to save Apple (Which had $1 billion in cash, and short term assets). It was cleaning house and clarifying the company's focus that saved Apple.
      Jumpin Jack Flash
      • Re: Bill and Steve didn't save Apple

        Now who's perpetuating myths? Even Wired refers to Microsoft rescuing a struggling icon (Apple).

      • @Rexxrally

        You and Wired are also perpetuating the myth...


        From the article: "[i]I called up Bill and said, ???I???m going to turn this thing around.??? Bill always had a soft spot for Apple. We got him into the application software business. The first Microsoft apps were Excel and Word for the Mac. So I called him and said, ???I need help.??? Microsoft was walking over Apple???s patents. I said, ???If we kept up our lawsuits, a few years from now we could win a billion-dollar patent suit. You know it, and I know it. But Apple???s not going to survive that long if we???re at war. I know that. So let???s figure out how to settle this right away. All I need is a commitment that Microsoft will keep developing for the Mac and an investment by Microsoft in Apple so it has a stake in our success.[/i]"

        Could Apple have survived and won the lawsuit against Microsoft? Bill Gates seemed to have believed that it could have. Microsoft saved themselves.
      • Actually,

        even if Apple had won the case, which it looked like it was, the olive leaf of settlement meant that Apple would not have run out of cash during the trial, which was a very good probability, and MS could get off with pennies on the dollar. THey also HAD to make the commitment to continue to develop for the Mac for 5 more years.

        Apple needed the settlement so that it did not run out of cash because the law suit would have drained their reserves MS would have continued to fight until Apple ran out of money. And before you say I'm a disciple, I'm writing this on my favorite MacBookPro. ;-)
      • @NonFanBoy

        you must have missed the quote, which is also in the book,

        But Apples not going to survive that long if were at war. I know that. So lets figure out how to settle this right away.
      • @mike

        Nope didn't miss the quote - it's in the post you replied to... see my answer to you below.
      • Steve and RIM

        Don't forget when Mr. Jobs was booted out of Apple. I remember quite well. I don't credit him with actually saving apple but more of an excuse to get rid of the top brass they had at that time.

        It was a time when entire companies (and I mean BIG ones) "switched" from Mac to PC. They didn't mention that in those cute commercials.

        Back to RIM.....

        The biggest blunder was the shareholders pulling the plug on the playbook / os enhancement. For better or worse, the only way to get a return on their investment was to complete it. I guess they should have kept controlling interest.
      • Here's the thing

        Apple might well have lasted to win a lawsuit. And they probably were in the right. But it's always much easier to protract such suits than shorten them up. If it was all out war, MS could easily have hard-balled Apple... not just delaying everywhere they could, but dropping all Mac development. Remember, this was already starting to happen... companies like Adobe were treating Apple as second class. Some never came back, others only came back after Apple went x86.

        So the patent suit was not a long term won for Apple, even if they won. Using that leverage to keep Office on the Mac intact, that was Apple's best possible move. Didn't hurt MS's legal case, either... and they knew for certain, with the Mac not being licensed anymore, that the Mac was never a potential threat to MS's desktop monopoly. Both companies did well from the deal. War would have hurt both, and just fed a bunch of lawyers for 3-5 years or more.
  • no buy from MS

    Nokia is good enough
    • Nokia is circling the drain as we speak.

      Nokia it trading at $2.60 today. Before Elop announced they were going 100% Microsoft, they were trading at $13.xx. Going 100% Microsoft is turning out to be quite a boat anchor for Nokia, does RIM want to go down that dark alley?

      Jumpin Jack Flash
      • And when it doesn't happen

        will you pretend you never said this, either?

        I have it bookmarked for you so you don't "forget" again, this time. ;)

        And trading at 2.60? It was better then closing shop, trading at 50 cents which is what would have happened had they gone Android.

        You do realize the large majority of Android phones are the free or cheap ones, phones that Nokia doesn't make?
        William Farrel
      • Willy the Troll

        You do realize the bulk of Nokia's income is "feature phones" fir third world countries? WP 7 is less than 2% of the smartphone market, and going to be EoLed ASAP. The Lumia phones are going t be EoLed with WP7, as Microsoft has no intention of upgrading the OS. This is why Microsoft refuses to commit to an Upgrade path to WP 8, other than buy a new phone...
        Jumpin Jack Flash
  • Now Who Saves RIM... Technology does!!!

    RIM and Blackberry still command the secure world and that includes goverment, military and financial circles. Those being hacked? Well they must be using the freebie Android devices or play toys IOS devices. With new OS 10 and some soon to be announced advance technology devices to further spread the devide between Smart Phones and Blackberries I am sure the future looks brighter for RIM.
    • ios toy?

      Uh, sorry. IOS closed system seems pretty resilient to virii and hacking unless jail broken, and then you deserve what you get. But if you really believe that strongly in RIM, bet the farm. Go all in. Let's see what happens.
      • Depends..

        ..on if you know what you're doing. Just change some passwords (especially root) and you're fine. It's the people who keep the default settings and passwords that create issues.

        Both my Android devices (Droid 2 Global and Captivate) have been rooted and work just fine. My D2G runs stock and my Captivate runs CM9. I can't wait until CM9 is available on my D2G. ICS rocks!
    • Are you blind?

      [b]RIM and Blackberry still command the secure world and that includes goverment, military and financial circles.[/b]

      Except for those BB devices in India and other places where the government has been given back door access to those devices. And that lost marketshare? That's also comprised of government, military, and financial circles.[b]

      Those being hacked? Well they must be using the freebie Android devices or play toys IOS devices.[/b]

      It must tick you off to no end that those "feebies and toys" have put BB into a rapid downward spiral... tell ya what - come up with some proof of an iOS device being hacked remotely. Note I said remotely because even a BB can be hacked if the hacker has physical possession of the device. I won't ask about Android because of the persistent malware issues.[b]

      With new OS 10 and some soon to be announced advance technology devices to further spread the devide between Smart Phones and Blackberries I am sure the future looks brighter for RIM.[/b]

      So you are betting the farm on vaporware? BB OS 10 is not out yet nor is this "soon to be announced" technology. Android, iOS, and WP7 are HERE and NOW not "soon to be here". NOW is what RIM needs to be focused on and what they needed to be focused on when Apple first released the iPhone - instead they, like Microsoft and like you, have dismissed them as toys... and now here we are with Microsoft bringing a revamped mobile OS to a market that is dominated by the very companies and devices they and you dismiss.

      As a former crackberry addict I'd love to see RIM and BB be a contender... I'd love to see BB OS 10 be a huge success, I'd love to see a BB device that would wow me enough to make me want to give up my Android device or even my iOS device... I just do not see that happening.
      • We agree on this...

        ???There is the possibility that BB just might get bought buy the Government like the Iridium buyout of yore

    The top people are not responding to the trama @ RIM...they are panic
    stricken and acting as if there is no life or hope left for RIM...They have
    practically called in the vultures to split the spoils.There are a number of
    miraculous new cutting edge technologies as a last resort to try and save the company, but they have bin BLUNTLY IGNORED ....
    psykes@sympatico.ca (share holder )