“Research In Motion Ltd. (RIMM)’s stock fell below its book value for the first time in nine years, a signal investors consider the BlackBerry maker to be worth less than the net value of its property, patents and other assets,” Hugo Miller and Matt Walcoff report for Bloomberg.
“RIM fell 3.3 percent to $18.66 at 1:31 p.m. in New York, below the book value per share of $18.92 at the end of last quarter, according to data compiled by Bloomberg data,” Miller and Walcoff report. “Book value comprises a company’s assets including cash, inventories, real estate and intellectual property minus its liabilities.”
Miller and Walcoff report, “‘The market has no faith in its current model, that is what the market is telling you,’ said Neeraj Monga, an analyst at Veritas Investment Research Corp. in Toronto. Monga, who has a ‘sell’ rating on RIM, says there’s a 50 percent chance the stock will drop below $10 within 12 months.”
“If a private-equity investor were interested in buying RIM, book value would be a useful indicator to gauge the company’s worth if the buyer then sold the assets, said Matt Thornton, an Avian Securities LLC analyst in Boston,” Miller and Walcoff report. “‘It really comes into play for somebody looking for downside protection,’ said Thornton, who rates RIM ‘neutral.’ ‘If we liquidate or sell off the assets, what’s our downside protection, that’s when it becomes a more meaningful metric.'”
Read more in the full article here.
MacDailyNews Take: Amateur hour, indeed.
[Thanks to MacDailyNews Readers “Dow C.” and “qka” for the heads up.]
But what about RIMMjobs security and BBM? OH and don’t forget their reliability. RIMMjob indeed. Crackberry MY ASS!
Damn! Hate much?
But Jack Golden has them take just under 10% of tablet market for the security conscious customers within 36 months. Any bets if they make 36 months?
Nice while it lasted RIM. The professionals and adults have now shown up so you can take your flaky toys and technologies and go home.
“a signal investors consider the BlackBerry maker to be worth less than the net value of its property”
Not a surprise; have you ever used a BB?
Until the iPhone, I gave-up on smartphones after using a BB. I don’t understand what people saw in the BB; it was a horrible email machine. It least WinMo had solitaire. Even Android – stolen or not – is light-years ahead of anything pre-2007.
While I don’t care for RIM, this stock price as a be all teller of the company is just anal……yst BS. PERIOD. Push the stock low enough and suddenly there is light at the end of the tunnel and BOOM the price goes up…
Sound like Apple stock prices…. “Apple dissapoints Wall Street,, even after making more money than ever..”??
Just a thought,
en
Maybe “Just a thought,” but a cogent one.
Holy crap Batman…MDN has two beleaguered headlines in ONE DAY!!!
I work in IT and I cannot wait until RIM is GONE! Their stupid BB and BES servers are a pain in the ass to administer and manage. Their BB activation process is a joke and silly waste of time. Good-bye RIM and thank you Apple!
Darwinism sucks!
Just another example of an analyst who knows NOTHING about which he is talking…
“Monga, who has a ‘sell’ rating on RIM, says there’s a 50 percent chance the stock will drop below $10 within 12 months.”
If the book value really is (I have not independently verified this) $18.92 then the stock WILL NOT drop below about $14.00 (about 75% of book value) before someone steps in, buys it up, breaks it up and sells off the pieces.
Looking way back to the “dark days” of Apple one of the louder, more recognized analysts of the day and I had a war across several sites (and in a couple papers — and it spilled over into emails with a few of the Apple executives) over how low Apple’s stock would go. The analyst was claiming it would go down to about 60% of book value. I claimed it would bottom out at over 100% of book value. It got down to about 110% of the book value. Clearly that “expert analyst” had no idea about what was really going to happen.
This analyst is no different.
Difference is, Apple had a future, and IP that was actually worth something. RIM doesn’t have either. Need to look closer; but that book value may be a bit high. Wouldn’t be surprised at an actual book that puts $10 around 65 per cent – so it’s possible.
SIDAGTMBTTS!
I am concerned for all the jobs potentially at risk in a relatively small community, all the hard-working people doing their best to make a decent living. I hope RIM finds a path through these difficult times to keep these people employed.
Sounds like the same story many communities have had in the last 10 years. A whole host of industries have been shuttered and shipped overseas.
This is the beginning of the end of RIM – that final phase of all-out collapse into full-blown existential crisis.
the utter PlayBook flop, the service outages, the lackluster new BB models … and a 60% drop in US market share in just one year – from 24% to just 9%!!!
so now the remaining BB’s owners are finally giving up en masse and defecting, especially to the iPhone 4S, or some Android phone if they must have a physical keyboard. RIM could lose half of them in the US in just this current quarter.
then finally in January the co-CEO’s will be pushed out of the tailspinning company, and RIM goes on the auction block. they’ll get golden parachutes of course, but for the employees and investors it’s going to be a total crash and burn.
DCW.
No, dead company is no longer walking, but barely crawling across desert sands under an oppressive sun in desperate search of water while the carrion fowl circle overhead.