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RIM Stock Falls Below Book Value

By - Source: BusinessWeek | B 23 comments

RIM shares dip below book value for the first time since '02.

It's been a rough year for Research In Motion and it doesn't look like it's going to get easier anytime soon. For the first time in nine years, the company's stock this week fell below book value.

BusinessWeek reports that, according to data compiled at the end of last year, RIM's per-share book value stands at $18.92. Yesterday, shares in New York dropped to $18.66, representing the first time since 2002 that the company's share price has been below book value. At roughly 9:30 a.m. on Wednesday, November 2, RIM stock stood at $19.67. By 10:41 this morning, this number had fallen to $18.34, and if analysts are to be believed, it's only going to decrease. BW cites Veritas Investment Research Corp analyst Neeraj Monga as saying RIM shares could drop below $10 within two months.

RIM made headlines last month when it suffered a service outage that affected users around the globe. The company managed to restore services after three days of problems but share prices have suffered since. Once a bright and shining star in the smartphone industry, RIM has struggled to keep up with the likes of Google and Apple. However, the company is optimistic, expecting strong sales of its Bold, Torch and Curve handsets for the next quarter and planning an update for its PlayBook tablet in February. The update, originally scheduled for release this past summer, will bring native email, calendar, and memo features, along with other PIM functions that have been missing since the launch in April.

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  • 4 Hide
    Anonymous , November 3, 2011 4:39 PM
    email, calendar, and memo features,

    how the hell dont they have this already?
  • 4 Hide
    monkeysweat , November 3, 2011 4:40 PM
    it's pretty sad that they make promises to add functionality to a product "shortly" after launch,, yet we have to still see the added functionality and we are only a couple months away from its successor.
    Does not give me confidence to purchase an item such as this.
    IF they had given it android capability by summer
    IF they had allowed things such as netflix
    - They may have had 3 of these in my house instead of none - the original ipad in my opinion is still far superior than this unit, not because of hardware, but because of software support

    IF YOU ARE GOING TO MAKE IT IN THE MOBILE WORLD, YOU GOTTA MAKE IT FOR EVERYONE TO USE, NOT JUST YOUR OWN BLACKBERRY CUSTOMER BASE - THIS WAS A PRODUCT DESTINED TO FAILURE DUE TO LACK OF UPDATES FROM RIM
  • Display all 23 comments.
  • 2 Hide
    alidan , November 3, 2011 5:04 PM
    Monkeysweatit's pretty sad that they make promises to add functionality to a product "shortly" after launch,, yet we have to still see the added functionality and we are only a couple months away from its successor.Does not give me confidence to purchase an item such as this.IF they had given it android capability by summerIF they had allowed things such as netflix- They may have had 3 of these in my house instead of none - the original ipad in my opinion is still far superior than this unit, not because of hardware, but because of software supportIF YOU ARE GOING TO MAKE IT IN THE MOBILE WORLD, YOU GOTTA MAKE IT FOR EVERYONE TO USE, NOT JUST YOUR OWN BLACKBERRY CUSTOMER BASE - THIS WAS A PRODUCT DESTINED TO FAILURE DUE TO LACK OF UPDATES FROM RIM


    i always thought the way to make it was not screw your coustomers, dont make a mediocre product, and give us what we want.
  • 0 Hide
    dfusco , November 3, 2011 5:13 PM
    Just think back when Blackberries were so cool....
  • 3 Hide
    getreal , November 3, 2011 5:21 PM
    alidani always thought the way to make it was not screw your coustomers, dont make a mediocre product, and give us what we want.


    This is exactly why Apple is so successful!
  • 4 Hide
    JMcEntegart , November 3, 2011 5:27 PM
    username2011email, calendar, and memo features, how the hell dont they have this already?


    RIM initially wanted the PlayBook to be a companion device for people who already owned Blackberry smartphones. The idea was that if you were in the airport, on a plane, traveling for business, etc., you could tether the two via Blackberry Bridge (similar to Bluetooth) and work on emails and documents and the like on a bigger screen.

    However, the company soon realised that by targeting only Blackberry owners, it was cutting itself off from a fairly massive number of potential customers. A few months before it launched the PlayBook, RIM came out and said (paraphrasing here): "It will work great as a standalone device as well as a companion device. It will be great and everyone should buy it." Addressing concerns that users who didn't own a Blackberry wouldn't have native email, calendar, memo, other PIM functions (these being provided by the BlackBerry when the two are tethered), RIM said it would release an update to add these at a later date. So far it hasn't.
  • -6 Hide
    hakkafusion , November 3, 2011 5:29 PM
    dfuscoJust think back when Blackberries were so cool....


    never? lol
  • 3 Hide
    STravis , November 3, 2011 5:39 PM
    Let's see if they figure this out in the short term or if they continue to make bad decisions, relegating themselves to a footnote in the history of technology.
  • 1 Hide
    eatmeimadanish , November 3, 2011 5:47 PM
    Its bizarre when the hacking community can get a touchpad running android, but a technology company like RIM can't figure out how to get basic service running on their OWN DESIGNED product... The fact that they are still in business is the actual miracle.
  • 2 Hide
    gm0n3y , November 3, 2011 6:07 PM
    I really want RIM to succeed. I like them as a company. The service outage really hurts the credibility though. The reason they have been successful so far is because of their reputation for reliability and security. Between the outage and their capitulating to foreign governments, they really are destroying their own user base.
  • 1 Hide
    redeemer , November 3, 2011 7:38 PM
    Best thing for RIM to do is to down size and completely serve the business community only. They wont be successful in the consumer market, going up against apple and android wont win them any market share.
  • 0 Hide
    dsolom3 , November 3, 2011 9:10 PM
    JMcEntegartRIM initially wanted the PlayBook to be a companion device for people who already owned Blackberry smartphones. The idea was that if you were in the airport, on a plane, traveling for business, etc., you could tether the two via Blackberry Bridge (similar to Bluetooth) and work on emails and documents and the like on a bigger screen. However, the company soon realised that by targeting only Blackberry owners, it was cutting itself off from a fairly massive number of potential customers. A few months before it launched the PlayBook, RIM came out and said (paraphrasing here): "It will work great as a standalone device as well as a companion device. It will be great and everyone should buy it." Addressing concerns that users who didn't own a Blackberry wouldn't have native email, calendar, memo, other PIM functions (these being provided by the BlackBerry when the two are tethered), RIM said it would release an update to add these at a later date. So far it hasn't.


    I remember when Apple launched its first Ipod, it could only be connected to a Mac toy-thingy. That cut Apple off 95% of potential market. Too bad RIM did not learn from Apple's mistake, they are paying for it with their stock price.

    On the other hand, this could be a deliberate sabotage of the stock value, RIM has enough money to buy off quite a few shares especially at this price, or in order to increase % holding by some major shareholders.
  • 1 Hide
    Anonymous , November 3, 2011 9:48 PM
    playbook
    stupidest name ever for a device...
    sounds like a nsfw innuendo
    u get what u get rim... u get what u get
  • 1 Hide
    invlem , November 3, 2011 10:14 PM
    getrealThis is exactly why Apple is so successful!


    I wouldn't count RIM out just yet, people seem to forget that Apple went from near bankruptcy to the largest tech company over the last decade.

    Companies in this market can change their horizons on a single successful product.

    I don't really understand all the hating going on for RIM in these comments.

    Yes blackberry's don't have all the fun games, but they were also never advertised as such, the point of a blackberry was to make people in the business world more connectable, yet maintain the company or individual's privacy and security... Quite frankly the blackberry is still the #1 device from a company perspective.

    If security means anything to you (as a general user, it probably doesn't, which is fine) then the blackberry is still the optimum phone.

    Multimedia wise it will never live up to the iPhone, it wasn't designed to... Web browsing is slower (actually anything via the 3g connection will be), not because the phone can't keep up hardware wise, but because EVERYTHING IS ENCRYPTED. You go onto Google, your browsing is encrypted, you watch a YouTube video, its encrypted, you write an email, encrypted... Overkill for a general user? Yes, definately, but that is RIM's market, that's what makes them unique, that's why businesses will continue to use them, and why they will survive.

    I haven't heard a government complain to apple yet about how they couldn't eavesdrop on their population's data communications, that in itself is a massive indication of the success of RIM's security infrastructure and why people trust them (and why they will always have a specific clientele that will come back again, and again).

    If the iPhone and android's key to success is fun & games, then Blackberry's key is security, and they have no competition in that area, not even close.
  • 0 Hide
    eddieroolz , November 3, 2011 11:27 PM
    Nearly everyone in the media industry makes it sound as if RIM is going down in flames, but the actual sales numbers show that RIM has sold more units than last year. The increase just isn't as meteoric as Android or as sustained as iOS, that's all.
  • 0 Hide
    Lunatic Magnet , November 4, 2011 2:05 AM
    One of RIM's major flaws is that OS updates are limited by hardware. My barely-1-year-old torch can't run Blackberry OS 7 but the new torches can. As a result, any new features or innovations with the latest OS aren't available unless you buy a brand new device :-S

    If RIM continues with this model they'll go the way of the Palm devices and dodo bird.
  • 0 Hide
    whysobluepandabear , November 4, 2011 3:51 AM
    RIM is already going under fast. I see maybe 1-2 a day leave. While iPhone and Android are absolutely destroying them.


    They're just pain in the asses - to be honest. Tiny screen, overly complicated and slow menu's, lack of apps (at least compared to iOS & Android), and finally, they aren't needed in the business world anymore.


    They also lack major media uses that other phones and devices use and have. Who watches Netflix on a Blackberry?
  • 0 Hide
    bin1127 , November 4, 2011 11:26 AM
    WhysoBluepandabearRIM is already going under fast. I see maybe 1-2 a day leave. While iPhone and Android are absolutely destroying them. They're just pain in the asses - to be honest. Tiny screen, overly complicated and slow menu's, lack of apps (at least compared to iOS & Android), and finally, they aren't needed in the business world anymore. They also lack major media uses that other phones and devices use and have. Who watches Netflix on a Blackberry?


    Actually, their keyboard is simply the best of any device out there. RIM has a lot going for them but they just aren't oriented towards a consumer market. You mean to tell me you watch netflix on an iphone? If you do, RIM should focus somewhere else.
  • 0 Hide
    belardo , November 4, 2011 11:49 AM
    RIM showed stupidity when they didn't release the Playbook with basic PIM functions... which WHY can't a rather large multi-national company FAIL to make such basic tools? And now, about 6 months later - still not out?!

    Many of us, including myself have been more product and I am just one person.

    When the update comes out... it'll be "gee - took you long enough". And people wonder why iPad is still kicking everyone's butts.
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