Investor bets millions more on RIM and BlackBerry 10 with purchase of an additional 12.2 million shares

Investor bets millions more on RIM and BlackBerry 10 with purchase of an additional 12.2 million shares
RIM shares have almost doubled from a recent low near $6 to a current quote of over $11. One investor who has profited on paper from the recent rally in the stock is Donald Yacktman. The $19 billion he manages invests in undervalued companies and Yacktman recently doubled his firms investment in RIM by adding 12.2 million shares last quarter. Despite the recent rally, the stock is still 30% cheaper than it was trading at last year and that, combined with the upcoming BlackBerry 10 launch, interests investors like Yacktman, who also considers the 80 million subscribers that RIM has now, to be worth a lot of money.

Yacktman's fund now owns 4.5% of RIM, just under the 5% threshold that would force him to file with the SEC. Such a filing would no doubt set off rumors of a takeover and would send the stock higher. Yacktman's funds are RIM's fifth largest stockholder. While Yacktman won't reveal the exact date of his RIM purchases, he did buy it during the second quarter when the stock ranged between $6.31 and $8.29. That gives the investor a profit of between $30 million and $54 million at current levels. Focusing more on undervalued stocks than indexes, the $7.1 billion Yacktman Focused Fund has returned  12% over the last five years putting it in the top 1% of comparable funds.

We've recently seen some new pictures of BlackBerry 10 models as we get closer to the expected February release of the new phones. RIM will introduce the new platform on January 30th.

source: Bloomberg

FEATURED VIDEO

22 Comments

1. jibraihimi

Posts: 801; Member since: Nov 29, 2011

So Investors have also begun to believe in Gambling...........

2. Aeires unregistered

Aren't all stocks gambling?

22. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

the investor is crap....he is tryin to be a playa but the noob is stuck with all this and he cant cash otu now so just simply buy more and hope people will be be dumb enough to follow....which will not happen as wee peeps are smarter than that!

3. parkwaydr

Posts: 572; Member since: Sep 07, 2011

This is what rim needs.

9. ohhhh.baracuda

Posts: 3; Member since: Nov 28, 2012

RIM is RIP Those $$$ could not save RIM

10. parkwaydr

Posts: 572; Member since: Sep 07, 2011

God I love the blind hate. Rim is far from dead, people seem to not realize that rim is only falling behind in the u.s. Not the entire world. If Nokia has a shot with the lackluster wp. Then how is it that rim has no chance? I'm going to love it when bb 10 destroys wp and all of you have to eat your uneducated words.

19. Nikolas.Oliver

Posts: 1574; Member since: Jul 01, 2012

+1111

4. xtroid2k

Posts: 601; Member since: Jan 11, 2010

Well, Technically investors buy stocks based on what little knowledge they can obtain about a company and then make judgments. Gambling is just that blind betting.

6. investatorstupadio

Posts: 3; Member since: Nov 28, 2012

Apparently, the CEO THorston Heintz did his job very well to fool the $$$ from stup1d investor

7. p0rkguy

Posts: 685; Member since: Nov 23, 2010

Wrong. Gambling isn't blind betting. Gambling is waging money or something of value on an uncertain outcome with intents to gain. Knowledge or not, it's gambling.

5. investatorstupadio

Posts: 3; Member since: Nov 28, 2012

That investor will cry... They should read this: bgr.com/2012/11/27/blackberry-market-share-2012-an​alysis/ cut and paste.... We all know BlackBerry is collapsing in America, so the new Kantar Worldpanel data showing its market share slipping below 2% in the United States is no shocker. Research In Motion’s (RIMM) performance in its second major market — the United Kingdom — is also pretty much as expected. Its UK market share slipped from 19% to 8% between the three months ending in October 2011 and the autumn of 2012. But what really pops out in the new Kantar data is BlackBerry’s performance in Brazil and the Mediterranean region, two crucially important markets for RIM. Relatively strong low-end BlackBerry sales in Latin America and the Mediterranean have kept RIM’s subscriber base north of 80 million globally. BlackBerry is relatively weak in India and almost non-player in China — unlike Nokia (NOK), HTC (2498) or LG (066570), RIM is unusually dependent on Brazil, Spain and France. The Kantar autumn numbers in these markets are brutal. BlackBerry’s share tanked from 24% to 3% in Spain in just one year. RIM’s share is also down from 9% to 3% in Brazil and down from 16% to 7% in France.

12. rusticguy

Posts: 2828; Member since: Aug 11, 2012

RIM is at #3 in India.

8. ohhhh.baracuda

Posts: 3; Member since: Nov 28, 2012

The new investor should read this: Good-bye, BlackBerry: 3 steps to prepare for its demise It's easy to switch to iOS or even Android, no matter what type of company you are "......... 3. Use the many tools available for securing iOS and Android For several years, the mantra among many in IT is that only the BlackBerry could provide sufficient security and management capability needed for sensitive information, especially in heavily regulated information-centric industries such as law, financial services, health care, and aerospace/defense. In fall 2008, the Secret Service told then President-elect Barack Obama that he could not use his BlackBerry for presidential work. After his inauguration, they relented for personal usage with the addition of specialty encryption. Today, he is frequently seen with his iPad. In other words, the world has changed. "When the iPhone and Android came to market, they were not as robust with security, but since then Apple, Google, and third-party partners have filled many of the gaps around security and manageability that had made RIM a differentiator. Today, there are really no industries or job functions that would have no place to go other than BlackBerry," Borg says. If the default security in iOS or Android isn't up to your needs, plenty of third-party mobile management tools are available to secure them at the level that companies require, Borg notes. "The leaders in this sector offer comprehensive security [capabilities] that in many cases meet or even exceed what RIM was doing with BES," Borg says. The big area that such tools for iOS and Android beat RIM center around is the very area with the most potential for employees and employers alike: applications. ............................" taken from infoworld.com/d/mobile-technology/good-bye-blackbe​rry-3-steps-prepare-its-demise-196770?page=0,1&sou​rce=fssr

11. phil2n

Posts: 519; Member since: Apr 30, 2012

i they are not hit this year, then they still have funds for the next and following years.

16. WhyIsSoHardToAccept.RIM.is.RIP

Posts: 3; Member since: Nov 28, 2012

No matter how much money RIM has, if BB10 doesn't sell, they will bankrupt eventually. It just a matter of dying slowly or quick

13. MC1123

Posts: 1256; Member since: Nov 12, 2012

good Lord... people should realize that US is not the world... grow up!! you keep on saying that BB/ RIM is dead but its not!! the last quarter sales just prove that... the king before, nokia, is nowhere to be found on top 10 list of phone manufacturer! i love nokia, im not bashing them! but just saying the facts!!! while RIM is on top 3, next to samsung and apple! means the entire world is still buying BB! US is not the world!

15. WhyIsSoHardToAccept.RIM.is.RIP

Posts: 3; Member since: Nov 28, 2012

Why it's so hard for you to accept RIM is dead. RIM is NOT top 3. It's number 7 for Q2 2012, and will be out of big 10 in Q3 2012 as kantar world panel data wrote. #. Maker . . . . . . Units . . . Q3 2012 . . . Q2 2012 1. Samsung . . . 56.2 M . . 32.8 % . . . .(was 32.9 %) 2. Apple . . . . . . .26.9 M . . 15.7 % . . . .(was 17.0 %) 3. Huawei . . . . . 16.0 M . . . 9.3 % . . . .(was 4.6 %) 4. Sony . . . . . . . 8.8 M . . . 5.1 % . . . .(was 4.9 %) 5. ZTE . . . . . . . . 8.0 M . . . 4.7 % . . . .(was 5.2 %) 6. HTC . . . . . . . . 7.8 M . . . 4.6 % . . . .(was 5.8 %) 7. RIM . . . . . . . . 7.4 M . . . 4.3 % . . . . (was 5.1 %) 8. LG . . . . . . . . . 7.2 M . . . 4.2 % . . . . (was 4.2 %) 9. Lenovo . .. . . . 7.0 M . . . 4.1 % . . . . (was 3.9 %) 10. Nokia . . . . . . 6.3 M . . . 3.7 % . . . . (was 6.7 %) these data from: communities-dominate.blogs.com/brands/2012/11/smar​tphones-q3-final-numbers-top-10-biggest-manufactur​ers-operating-systems-installed-base-etc.html

14. MC1123

Posts: 1256; Member since: Nov 12, 2012

best wishes to BB10!! people grow up and understand that we need choices!!! if we are stick to one, its kinda stupid! and i hate it!

17. WhyIsSoHardToAccept.RIM.is.RIP

Posts: 3; Member since: Nov 28, 2012

More choice is good. but wrong choice is bad BB10 would just make the company who will bet on BB10 suffer a though year when RIM finally bankrupt. Smart company will chose android and iOS over BB because BB10 is a high risk. or if they want to chose BB10, they should wait and see for 6-9 month.

18. phil2n

Posts: 519; Member since: Apr 30, 2012

But BB lovers will always be a bb lover. Thats why when they think that the comment is negative they thumbs you down

20. Nikolas.Oliver

Posts: 1574; Member since: Jul 01, 2012

agreed, bb lovers will do anything in order to defend their idol oh and also, keep in mind that MC1123 is pikapowerize's clone

21. martinikatz

Posts: 6; Member since: May 05, 2012

What's interesting about the comments here is that some people are jumping at the opportunity to say that investors are simply into gambling. These posters are simply eager to say something insignificant, if not negative. They are willfully overlooking what's at the base of the investors' actions. The investors, and especially the one mentioned in the heading, see that RIM is moving along in a solid attempt, rather than a dreamy one, to re-enter the market in a significant, relevant and meaningful way through an extremely much better thought-out product. The reviews have been good, apart from one early goers jumping the gun (and before anything was really seen or demonstrated) to say that Blackberry 10 was "dead on arrival." Clearly, if that were the case, we'd be seeing one negative review after another. That is contrary to what we've been seeing. It doesn't mean that Blackberry 10 is an "ipone killer." It does mean, though, that RIM's attempts are yielding something definitely worth considering. That, at least, is what the investors are responding to, rather than to any uncontrolable urge to "gamble."

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.