BlackBerry maker CEOs step down as pressure mounts

[Glacier]

Releasing earnings after the close of market today.

Time to sell all your shares and buy them back tomorrow!

[Static]

Maybe not. I'll see how the earnings are and see how it trades in after hours on the NASDAQ.

[Static]

"This latest earnings report was for the company’s quarter ending Nov. 30, 2012. Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) reported sales of $2.73 billion, which beat out the expected sales of $2.66 billion.

The company reported an adjusted earnings per share loss of 22 cents, compared to analysts’ consensus of a 35 cent loss per share.

Research In Motion Limited (NASDAQ:RIMM) (TSE:RIM) reported sales of 6.9 million BlackBerrys and 255,000 Playbook tablets. It also reported $2.9 billion in cash, an increase of $600 million. Revenue came in at $2.7 billion, a 48 percent decrease from a year ago.

Subscriber bas declined by 1M."

Shares are up in after hours. Its going to $18 by the end of January.

[Homeownertoo]

Guess you didn't hear about the earnings hit Rim faces in the future. The billion dollars/quarter revenue it earns in service fees is headed for a steep decline.

" On tonight's conference call, Thorsten Heins said something that we've never heard from RIM before. He acknowledged that, going forward, there would be a change in RIM's service fee structure. Some customers will still want the "full package", including security, mobile device management, and BES 10. They will generate the highest fees for RIM. But some customers won't need any extra services from RIM and will therefore generate no fees at all for Team BlackBerry.

That was the knockout punch for the night.

Sure, Thorsten said the service revenues "aren't going away". Technically he's right. As long as RIM has an enterprise base, or perhaps a professional consumer base that wants some kind of extra service from RIM, they'll generate some fees. But with (my estimate of) 80% of their subscribers being on BIS plans, and so many of those folks being in emerging markets, I think it tells us that the vast majority of RIM's current service revenues will disappear."

Chris Umiastowski on Crackberry.com

[Static]

Oh Homeowner the number of people not wanting services is all speculation, and I'm not sure how different that would be from today. THe fees have to be competitive so they will decline, but not disappear (that too is alll speculation). Furthermore, their customer base will grow creating more revenue, so I am still not worried. If you knew how to read financial statements, you would see that the majority of losses was from intangibles, mainly amortization and goodwill. If the company is doing so poorly now, how we're they able to bank $600M last quarter. Face it, your financial background, even though you were a professional, is proving to be sub-par. Anyways, admit it, you're proving to be wrong. But, keep digging for the bad news.

[Static]

Homeowner, prices are down 10% in premarket. You should consider buying some.

[Homeownertoo]

From today's press:

Kris Thompson, an analyst with National Bank in Toronto, cut his rating on the stock to the equivalent of a sell.

Canaccord Genuity analyst Michael Walkley said there was a very low probability that the market would support RIM’s new mobile computing ecosystem, and he remained skeptical about the company’s ability to survive on its own. “We believe RIM will eventually need to sell the company,” said Walkley, who cut his price target on RIM’s stock to $9 from $10.

Avi Silver of Credit Agricole Securities lowered his recommendation, from an underperform rating to a sell. The company’s business model “is being challenged by operators that are unwilling to both subsidize devices aggressively and hand over a slice of their data revenue,” he said in a note.

Service-fee revenue could decline by as much as a third, said Kevin Stadtler, president of Fort Worth, Texas-based Stadtler Capital Management, which owns about 40,000 RIM shares. “It’s going to be a big hit,” he said.

“By our estimates, (the service fees revenue) is really the only real source of profitability,” said Jennifer Fritzsche, an analyst at Wells Fargo & Co. in Chicago.

Of course, in Static's pinched view, none of these people know how to read a financial statement.

[Static]

Still not worried. And yes, very few analysts(and "professional" financial advisors such as yourself) are often correct. If they were they would have an advertised track record and be managing large sums of money. the job of an analyst is to promote the trading onjective of the firm they work for. In this case Cannacord has been a constant short-seller. I'm not sure anout national bank.I guess you missed in the financial statements that RIM will be profitable in the next 2 quarters base on the 5000 job cuts by year end. This base on current revenue. Please explain to me, if you can, how a company that banked a half billon dollars last quarter is in trouble? Wait, you can't. This is an opportunity to buy in. Of it wasn't 15% of my portfolio already I would be buying more. I've stated this before, RIM lost a lot of people's and funds money when it was $120. These sheeple are all riding the short train trying to recover some of their losses by shorting.

Be greedy when others are fearful! Homeowner, it is Ok to admit you are wrong.

[Static]

Positive outlook by analysts and portfolio managers....weird. I can cut and paste too Homieowner.


The reception from investors and analysts was generally positive, though expectations were low given this quarter is the last before RIM’s launch of the BlackBerry 10 devices. Tom Astle of Byron Capital Markets said he is “very happy with execution on almost all fronts,” from cash management to what he considers a manageable loss of BlackBerry subscribers.

“If these guys can launch a product as well as they executed this quarter, then this should be a very exciting stock,” Mr. Astle said.

But like many of the analysts who peppered Mr. Heins with questions on the conference call, Mr. Astle remained concerned about the future of RIM’s so-called service access fee. This lucrative revenue source for RIM is estimated to be 95-per-cent margin and comes from carriers around the world who must pay a per-device fee to access RIM’s proprietary messaging network. Mr. Heins and his executives said they are going to offer “tiers” of pricing that analysts assumed would lead to big declines over the next 12 months, at a time when RIM needs the cash.

“There is a lot of confusion on the generation of monthly services revenue as the company transitions to BB10,” said analyst Kris Thompson of National Bank Financial, who has generally been bearish on RIM. “You could see the stock sell-off post market when the tiering of service revenue was disclosed on the conference call. Investors will focus on the services model since few, if anyone, expects the company to generate sustainable profit on the hardware business alone.”

Regardless of future declines, however, this quarter’s results did little to temper the enthusiasm that has swirled around the stock recently. RIM shares have more than doubled since late September on glimpses of its new touchscreen phones, which run a sleeker type of software than older BlackBerrys. Ironfire Capital LLC founder Eric Jackson recently became a RIM shareholder after having shorted the company’s stock, and is convinced RIM’s momentum will continue.


The people running RIM are much smarter than you. I have faith investing in the
Company. The stock will be $18 in January.

[twobits]

The stock will be $18 in January.

I hope so. That is when I'll be selling and shorting. If they do miraculously go higher I'll have all the way to $27 to cover and still be in the black.

[Static]

I hope so. That is when I'll be selling and shorting. If they do miraculously go higher I'll have all the way to $27 to cover and still be in the black.

Sure you will...I bet you shorted it yesterday too and will be buying once the markets re-open. Mark my words, it is a $40 stock.

[Static]

http://www.msnbc.msn.com/id/50284117/ns/business-motley_fool/

[twobits]

Sure you will...I bet you shorted it yesterday too and will be buying once the markets re-open. Mark my words, it is a $40 stock.

Static, been playing this game a lot longer than you and have forgotten more than you know. Keep dreaming though.

[Static]

Lets hear some of your suggestions then. what stocks do u recommend buying today? How about you update your trade recommendations on RIM.

Edit to add: I am certain you have changed your last post. But hey, I don't blame you because it would have only made you look like a fool.

[twobits]

Lets hear some of your suggestions then. what stocks do u recommend buying today? How about you update your trade recommendations on RIM.

Edit to add: I am certain you have changed your last post. But hey, I don't blame you because it would have only made you look like a fool.

Not a spare bedroom stock pumper like you.