Why Bankruptcy’s a Possibility for RIM, Technology Report by Leading Financial Newsletter Profit Confidential

Share Article

Research In Motion Limited (RIM) continues to disappoint investors with its latest quarter earnings, and there is now a possibility of the firm being forced into bankruptcy if it doesn’t turn things around, according to Sasha Cekerevac, contributor to Profit Confidential.

Why Bankruptcy's a Possibility for RIM, Technology Report by Leading Financial Newsletter Profit Confidential

Why Bankruptcy's a Possibility for RIM, Technology Report by Leading Financial Newsletter Profit Confidential

“Yes, RIM is trying to cut costs by laying off 5,000 people, but management should have realized they were far behind other technology stocks a long time ago and adjusted their cost base then,” argues Cekerevac.

Past News Releases

RSS

Research In Motion Limited (RIM) continues to disappoint investors with its latest quarter earnings, and there is now a possibility of the firm being forced into bankruptcy if it doesn’t turn things around, according to Sasha Cekerevac, contributor to Profit Confidential.

In the article “Bankruptcy Now a Possibility for RIM,” Cekerevac says that the latest quarterly earnings report disaster is a sign that management has no idea of how to run their company properly.

“Even worse than the latest quarter’s sales numbers is news that Research In Motion is delaying the launch of its new ‘BlackBerry’ phones once again,” says Cekerevac. “The new operating system and BlackBerry phones won’t be on the market until the first quarter of 2013, a huge delay.”

Cekerevac believes RIM has been out of touch with what the market wants for the past few years and it shows.

“Yes, RIM is trying to cut costs by laying off 5,000 people, but management should have realized they were far behind other technology stocks a long time ago and adjusted their cost base then,” argues Cekerevac.

Cekerevac notes that RIM’s shipment of phones for the quarter was only 7.8 million, as compared to 13.2 million BlackBerrys shipped during last year’s quarter, a drop of 40%.

“Technology stocks can’t continue to exist at that pace of decline,” says Cekerevac.

Some analysts are now stating that RIM might last 18–24 months before going under, but Cekerevac thinks it might be sooner: “Two reasons: the cost of laying off employees is going to be high,” says Cekerevac, “and the delay in introducing the new phones means more people are going to migrate to other products.”

Cekerevac notes that once a customer leaves, it’s very difficult to get them back.

“Especially with far better products on the market, RIM is just not able to compete,” Cekerevac concludes.

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.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Michael Lombardi
Follow us on
Visit website