RIM Still Struggling Despite Beating Earnings Expectations, According to Leading Financial Newsletter Profit Confidential

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According to George Leong, financial expert and contributor to Profit Confidential, troubled “BlackBerry” maker Research In Motion (RIM) faces extremely difficult roadblocks ahead, namely from Apple, Google, and Samsung, despite beating earnings expectations and adding seven million new subscribers.

RIM Still Struggling Despite Beating Earnings Expectations, According to Leading Financial Newsletter Profit Confidential

RIM Still Struggling Despite Beating Earnings Expectations, According to Leading Financial Newsletter Profit Confidential

RIM attracted some trading from speculators after reporting a lower loss than expected in its fiscal second-quarter earnings season. Revenues of $2.9 billion easily beat the estimate of $2.5 billion in spite of a year-over-year 31% decline.

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According to George Leong, financial expert and contributor to Profit Confidential, troubled “BlackBerry” maker Research In Motion (RIM) faces extremely difficult roadblocks ahead, namely from Apple, Google, and Samsung, despite beating earnings expectations and adding seven million new subscribers.

“RIM attracted some trading from speculators after reporting a lower loss than expected in its fiscal second-quarter earnings season,” reports Leong. “Revenues of $2.9 billion easily beat the estimate of $2.5 billion in spite of a year-over-year 31% decline.”

According to Leong’s stock analysis, the growth was largely generated from demand in the emerging markets.

In the article “Don’t Get Fooled by Research In Motion,” Leong notes that RIM sold 7.4 million BlackBerry smartphones, which was higher than the estimate calling for just seven million, helping the company increase its cash balance by $100 million, making the total $2.3 billion.

However, despite all the positive gains, Leong points out that RIM has still lost a large chunk of its market share to innovative technology giants like Apple and Google. He states that RIM’s new “BB10” operating system could be the final opportunity for the company to try to regain market share.

“RIM remains a work in progress,” concludes Leong, who is not convinced the market will ever see the final product.

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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