Research In Motion Dials 911
Tuesday night, Research In Motion (RIMM) announced that it has hired JPMorgan (JPM) and RBC Capital Markets to assist "in reviewing RIM's business and financial performance." This comes as the BlackBerry maker warned of an expected loss for the current quarter, as well as prospects for additional headcount reductions.
Being a product company, the combination of low volumes and ongoing pricing pressure are likely culprits, on top of RIMM's fixed-cost structure. While incremental headcount reductions may help on the cost side, the reality is that it's the product, or lack of one that consumers want, that's the issue. Underscoring that is RIMM's total inventory, which grew to $1.03 billion last quarter from $618 million a year earlier -- and that does not factor in unsold smartphones and tablets held by the company's retail and carrier partners....384 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.