RIM Off 10 Percent as Even the Most Patient Investors Lose Patience
On Thursday, RIM asked its investors for a bit more patience as the company navigates through a difficult transition.
But, it appears that well has dried up, at least for a significant number of investors and analysts. The stock is off more than 10 percent on Friday and even those analysts who have been bullish on the company’s prospects are starting to sour.
Wedge Partners analyst Brian Blair summed things up pretty well in a research note titled “Bad to Worse.”
“The core problem for RIM in the quarter is that only one of their new products sold well,” he wrote, also bemoaning the company’s continued investment in the money-burning PlayBook before pulling his hair out over the fact that the first phones using the company’s next-generation operating system are delayed until the end of next year. And Blair had actually been briefly bullish on the company’s prospects earlier this year.
“After holding a negative opinion of RIM for the bulk of this year, we had a positive view about the hopes of this product cycle and anticipated it would lift metrics for two quarters, but we were wrong as it didn’t even last for one,” Blair wrote.