Don't Let RIM Lure You In
Over the last year Research In Motion (RIMM) shares have fallen more than 75%, and they've been hovering around $13 to $14 for the last month. That decline has been driven by eroding market share, missed earnings and reduced outlooks. While the recent management transition may have some speculating as to the a new strategy, Bloomberg recently reported that RIM is considering hiring a financial advisor to help with "strategic options." The gist of the report is that RIM would prefer to license its BlackBerry software as its first option before it pursues a strategic investment -- and, at least at this point, the company does not plan on selling itself.
To some extent this is not news: In late March, new CEO RIM Thorsten Heins said the company was "undertaking a comprehensive review of strategic opportunities including partnerships and joint ventures, licensing and other ways to leverage RIM's assets." The question is whether investors should be tempted, and in my view the answer is a resounding no. ...683 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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