RIM shares drop to lowest level in nearly a decade

RIM shares drop to lowest level in nearly a decade

Summary: Research in Motion, the BlackBerry maker, is well below book value, and has not seen shares this low since 2004.

SHARE:

Shares in Research in Motion, the BlackBerry maker, fell over 2.5 percent on Wednesday to close at just over $15 a share, the lowest closing price for the stock since mid-2004, according to MarketWatch.

I'm beginning to think the company is cursed.

The flailing company is set to report its results for the third-quarter on Thursday. Analysts are expecting a continued downward-trend as the company struggles with sales of its BlackBerry smartphones, and copes with increased pressure from tablet rivals, such as with Apple's iPad.

If things couldn't get any worse for the company, it has to deal with rogue executives that drunkenly ground an aeroplane, and governments hellbent on shutting the service down altogether.

(Source: MarketWatch)

Research in Motion pre-announced its projected earnings and revenue on December 2nd. The company's stock chart, summed up by colleague Larry Dignan, has "no confidence", and all but called out on the two co-chief executives Mike Lazaridis and Jim Balsillie to leave the company "before it's too late".

But Wall Street is warning that it could get even worse for the Ontario-based company.

Not only is Research in Motion dealing with poor sales and near-no decline in its BlackBerry PlayBook tablet inventory, it warned that its fourth-quarter could turn out to be even more dire than its near-death performance during the third-quarter.

Earlier this month, the BlackBerry maker said that it had sold just over 14 million smartphones in November alone, along the mid-line of its estimations. While its considerations were good, it did not negatively impact the company's profits.

Research in Motion took a $485 million charge relating to poor PlayBook tablet sales. Despite the poor sales, the company said that it would stick with the tablet market. One presumes that is until the inventory dries up, and it can beef out its smartphone range with the long-considered 'tester' QNX-based operating system.

Dubbed 'BBX', the company last week lost a trademark battle with a company that owned the name. Research in Motion appeared swan-like: above the water, having a contingency plan and renaming the software 'BlackBerry 10'. Under the water, it was struggling to keep up with the vast torrent of water rushing between its knees.

Analysts are expecting as low as $1.20 a share from end of quarter trading.

Related:

Topics: BlackBerry, Mobility, Security

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

5 comments
Log in or register to join the discussion
  • RE: RIM shares drop to lowest level in nearly a decade

    How low can it go?
    jamboy34
  • RE: RIM shares drop to lowest level in nearly a decade

    Very sad. Microsoft deserves this position, not RIM.
    The Danger is Microsoft
    • RE: RIM shares drop to lowest level in nearly a decade

      @The Danger is Microsoft

      ???-_-!
      gtese
    • RE: RIM shares drop to lowest level in nearly a decade

      @The Danger is Microsoft Sorry, the stock market works on how much money you're making, not on how much you irrationally hate a company.
      Aerowind
  • RE: RIM shares drop to lowest level in nearly a decade

    I have the pleasure to brief you on our Data Visualization software
    "Trend Compass".

    TC is a new concept in viewing statistics and trends in an animated
    way by displaying in one chart 5 axis (X, Y, Time, Bubble size &
    Bubble color) instead of just the traditional X and Y axis. Discover
    trends hidden in spreadsheets. It could be used in analysis,
    research, presentation etc. In different business sectors, to name a
    few we have Deutsche Bank, NBC Universal, RIM, Vanguard
    Institutional Investor, Ipsos, Princeton University as our clients.

    NBC presentation on TED using Trend Compass exported Videos. Now on
    CNN Money / Fortune (Dec 21st,2010):
    http://tech.fortune.cnn.com/2010/12/21/from-laughing-to-judging-in-fifty-years-the-evolution-of-televised-emotion/

    The following link is for our new Geographical Trend Compass
    (Earthquake in Japan - Mag vs Depth vs Time):
    http://www.epicsyst.com/test/v2/japan-earthquake

    Link on OPEC oil indicators:
    http://www.epicsyst.com/test/v2/libya-oil/

    Link on Ads Monitoring on TV Satellite Channels during April 2008.
    Pick Duration (Ads daily duration) vs Repeat (Ads repetition per day).
    http://www.epicsyst.com/test/v2/tv-monitor/

    Link on UK Master Card vs Visa performance :
    http://www.epicsyst.com/test/v2/mastercard_vs_visa/

    Links on Funds:
    http://www.epicsyst.com/test/v2/best_exchange_traded_funds/
    http://www.epicsyst.com/test/v2/us_insurance_funds/
    http://www.epicsyst.com/test/v2/aaim_fund_performance/

    Link on other KPIs :
    http://www.epicsyst.com/test/v2/hospital_performance/
    http://www.epicsyst.com/test/v2/international_insurance/

    Link on Chile's Earthquake (Feb 27th 2010):
    http://www.epicsyst.com/test/v2/EarthQuakeinChile/

    This a link on weather data :
    http://www.epicsyst.com/test/v2/aims/

    This is a bank link to compare Deposits, Withdrawals and numbers of
    Customers for different branches over time ( all in 1 Chart) :
    http://www.epicsyst.com/test/v2/bank-trx/

    Misc Examples :
    http://www.epicsyst.com/test/v2/airline/
    http://www.epicsyst.com/test/v2/airline2/
    http://www.epicsyst.com/test/v2/stockmarket1/
    http://www.epicsyst.com/test/v2/football/
    http://www.epicsyst.com/test/v2/swinefludaily/
    http://www.epicsyst.com/test/v2/flu/
    http://www.epicsyst.com/test/v2/babyboomers/

    This is a project we did with Princeton University on US unemployment :
    http://www.epicsyst.com/main3.swf

    A 3 minutes video presentation of above by Professor Alan Krueger
    Bendheim Professor of Economics and Public Affairs at Princeton
    University and currently Chief Economist at the US Treasury using
    Trend Compass :
    http://epicsyst.com/trendcompass/princeton.aspx?home=1

    You can download a trial version. It has a feature to export
    EXE,PPS,HTML and AVI files. The most impressive is the AVI since you
    can record Audio/Video for the charts you create.

    http://epicsyst.com/trendcompass/FreeVersion/TrendCompassv1.2_DotNet.zip

    All the best.

    Amr Salah
    Trend Compass Team
    Epic Systems
    www.epicsyst.com
    amr.salah