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Research In Motion Opens 10% Down A Day After Issuing A “Business Update”

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After a rough day yesterday, RIM’s stock opened 10 percent lower today, trading at $10.05 at the opening bell. The stock price briefly recovered but it’s on a steady downward trend as of the writing of this post. If this slide continues, the stock is set to hit a low not seen since 2003.

Trading of RIM shares was halted for 15 minutes yesterday in order to issue a what the company called a “business update“. CEO Thorsten Heins detailed RIM’s recent challenges, and also explained that the company is employing the help of Royal Bank of Canada and J.P. Morgan to evaluate financial strategies. The company also warned that it will report a loss for the fiscal quarter ending on June 2. This came on the heels of report that states RIM is set to lay off a major chunk of its workforce.

Things at RIM are set to get worse before they get better. It seems nearly every week another high-placed executive is leaving the company. The RIM of the future (if there is a future for RIM) will look nothing like the RIM of the past.

I still believe RIM can recover. The company has a good chunk of the enterprise smartphone market and the products in the pipeline are very compelling. However, RIM needs to make it through these dark days first and hiring bankers is a good start.


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