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Stocks B / Blackberry Ltd.


Subject:  Downgrade Date:  11/10/2011  1:47 AM
Author:  newsreporter Number:  2301 of 2379

RIM a "wounded puppy" as bank downgrades stock outlook

Barclays Capital, spooked by the continuing decline in the value of Research in Motion's share price, (it has fallen by more than half since May this year), has "re-assessed" the business of the Canadian manufacturer of BlackBerry devices and in light of that, has downgraded the value of the company's stock. Martyn Warwick reports.

Not that you'd readily understand this by reading the "note" that Barclays has circulated to investors. Try this for size: "While near-term BB7 demand looks healthy, an uneven BBX/QNX migration including delays in Playbook 2.0 and likely push-out of BBX smartphones to mid-2012 is likely to prevent RIM from shaking its low multiple."

One assumes this is analyst-speak and some sort of arcane code meaning that RIM's shares are likely to continue to fall in value whilst the company's market share also carries on declining mainly because an oft-promised email update to the PlayBook tablet still hasn't been introduced. RIM now says the update will be available in February 2012 but even so, it won't include BlackBerry Messenger.


Elsewhere, Timothy Ghriskey, the chief investment officer of the Solaris Group, anthropomorphosising like there's no tomorrow, says, “This [RIM] is a wounded puppy. {Aaahh, there then} The company has been losing business, there’ve been operating technology problems. There isn’t a lot of customer loyalty anymore.”

That's not all, the Jaguar Financial Group is continuing to call for RIM to be dismembered, merge with another company or put itself up for sale, while Richard Fogler of Kingwest & Co of Toronto says that now RIM is actually worth less than the combined net value of its physical assets a such as property and patents, the company "isn't going to get bigger in the future; it’s actually going to shrink.”

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