I’m not talking of a minor incident here, but a major gaff for a company trying to convince consumers and investors that it has a bright future and that they should trust the company. Failing to deliver a new product by months is not acceptable.
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New York, NY (PRWEB) December 30, 2011
Profit Confidential has put its two cents in regarding the technology battle between Research In Motion (a.k.a. RIM) and Apple. “The reality is that the ‘BlackBerry’ no longer has that glamour it once entailed. The product is seen as archaic and old,” says George Leong, contributor for Profit Confidential, a popular financial e-newsletter.
According to Profit Confidential, Research In Motion’s stock plummeted over 10% after earnings in December to levels not witnessed since the first week of January 2004, while estimates are for Apple to continue revenue growth for the next two years at rates of 28.9% and 15.0%, respectively.
Leong reports that, according to RIM’s earning release in the third quarter, revenues fell six percent year-over-year to $5.2 billion. The company shipped about 14.1 million BlackBerry smartphones and 150,000 “BlackBerry PlayBook” tablets, which have proved to be a massive disappointment. Comparatively, Apple sold 11.12 million “iPads” in its fiscal fourth quarter.
In recent news reported in Profit Confidential, RIM also announced that it would have to delay the launch of its new line of “BlackBerry 10” smartphones until late 2012. Leong writes, “I’m not talking of a minor incident here, but a major gaff for a company trying to convince consumers and investors that it has a bright future and that they should trust the company. Failing to deliver a new product by months is not acceptable.”
Leong believes that RIM needs fresh ideas and a change of ownership or it could face possible extinction. “And, unless RIM can make its products more desirable, it may endure a slow death.”
“For the time being, I would long Apple and avoid RIM. RIM is tempting as a short candidate, but given its arsenal of patents, the company could be a takeover target,” says Leong.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.
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