Wall Street research firm issues buy recommendation on RIM, expects a takeover
Microsoft and Google. Still, the analyst was wary about his call which he realizes goes against the majority of the Street. He admitted that he could be wrong with the buy recommendation, saying that in the past he has been both right and wrong on the stock.
He also wonders whether or not RIM's board realizes the dire straits that the company is in. Discussing HP and Nokia, he says assets can always get cheaper and that RIM's board needs to make a deal now. RIM's shares rose a dime on Monday to $7.49, well off the 52 week high of $33.54. The all-time high is above $140.
2. snowgator (Posts: 3275; Member since: 19 Jan 2011)
At what point would Microsoft actually over extend itself? A ton of projects they are already in, a ton of R&D going into their Windows 8 products, a ton of money is going into their Surface Tablets, Nokia, and Windows Phone 8 roll out. The next XBOX is being put off until next year due to priorities. This may be unrealistic. A partnership and loans similar to Nokia, maybe. But to outright take over to the tune of 2 Billion or so? Not buying it (pun intended).
What would RIM offer Google, that Google doesn't already have, or is on the process of improving? BBM across all Android- sure that would be great. The secure servers and BlackBerry penetration with businesses would be nice for combating Apple's and Microsoft's improving standing with professionals, but again at the near 2 Billion price, can't they do that from Google central?
Amazon kinda makes sense. But that is jumping in the deep end of the pool, which didn't work for HP and it's deep pockets, either.
We will see. Something has to give. RIM cannot survive until 2013 with the vultures hanging over their stock like this. They have to answer, or the worst case is coming.
3. Immolate (Posts: 288; Member since: 17 Jun 2011)
Buying Rim would be like punching a hole in your hull because the sailing is too smooth.
5. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)
not really... just like adding a torn sail that might help or might not... kind of like moto for google
4. wizzardtech (Posts: 59; Member since: 12 Mar 2012)
Who knows selling the company would bring positive results. But im pretty sure it will cost them arm and leg too. There is no win win situation here, no matter what option they might consider there will always be a consequence. They have to do it now, before its too late.
6. groupsacc (Posts: 232; Member since: 28 Feb 2012)
These investment firms are a joke. They recommend to buy a stock, wait for everyone to buy and push up the stock price, then they dump their shares for profit, while everyone else is left hanging.