RIM shares drop to lowest level in nearly a decade
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.
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: