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The Research In Downward Stock Motion Continues As RIMM Misses Everything

Tyler Durden's picture





 

For any RIMM shareholders expecting a miraculous deus ex, somewhat like Europe's broker beggars who still are choosers, to come out of left field in today's earnings reports, there was nothing but epic disappointment.

  • Revenues came in at $2.81 billion on expectations of $3.1 billion, and down from $4.91 billion a year prior
  • EPS were $(0.37) on expectations of just a 7 cent miss.
  • The outlook is just as horrible, with RIMM announcing it expects a Q2 operating loss
  • It also see lower shipment volumes, and delayed the launch of Blackberry 10 to Q1 2013
  • Finally, the firm will cut 5,000 jobs

If the stock isn't moving much it is because it has been halted since pre announcement. It will reopen at 4:40pm, probably between 10 and 20% lower.

From the Outlook section in the press release:

The Company expects the next several quarters to continue to be very challenging for its business based on the increasing competitive environment, lower handset volumes, potential financial and other impacts from the delay of BlackBerry 10, pressure to reduce RIM's monthly infrastructure access fees, and the Company's plans to continue to aggressively drive sales of BlackBerry 7 handheld devices. The Company expects to report an operating loss in the second quarter of fiscal 2013, as RIM continues to invest in marketing programs and continues to work through the transition to BlackBerry 10, as well as the Company's fixed costs being allocated over a lower volume of shipments. This outlook excludes the impact of charges related to the CORE Program.

We do use the term outlook loosely: at this point we are not sure whose odds of being a viable going concern in 2013 are higher: Greece or the once proud Canadian corporate fixture.

We will post an after hours chart as soon as the stock is unhalted.

RIMM just opened at $7.5 from its $9 after-hours close before the halt - a mere 17% drop.

 


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Thu, 06/28/2012 - 16:33 | Link to Comment SilverTree
SilverTree's picture

Any RIMM job openings left?

Thu, 06/28/2012 - 16:45 | Link to Comment Mark Carney
Mark Carney's picture

LOLOLOLOL

-typed from my BB Torch

Thu, 06/28/2012 - 16:53 | Link to Comment Max Fischer
Max Fischer's picture

 

 

The after-hours price doesn't matter because it's merely a digital representation of actual physical shares. In 2003, I bought RIMM at $120 and TOOK DELIVERY OF THE SHARES! 

Bitches!

Am I down?  Nope!  Have I lost money?  Nope!  Haven't sold!  Got the same number of equity shares in my safe today as I did last night.  No big deal.

MF

Thu, 06/28/2012 - 17:09 | Link to Comment css1971
css1971's picture

Gold never goes to zero.

Thu, 06/28/2012 - 17:15 | Link to Comment nope-1004
nope-1004's picture

RIMM will, for sure.  They just released the upscaled $1250 phone for Porsche owners.  lol.  It doesn't surprise me, because the CEO was more interested in buying an NHL hockey team caring about customer needs.

 

Thu, 06/28/2012 - 17:18 | Link to Comment old naughty
old naughty's picture

Another sad day for the maple leaves dominion.

Thu, 06/28/2012 - 17:13 | Link to Comment Matt
Matt's picture

Are you serious, or is this a snipe at physical vs paper gold?

Thu, 06/28/2012 - 17:33 | Link to Comment Max Fischer
Max Fischer's picture

 

 

Fuck yes, I'm serious.  Scottrade is for mainstream sheeple.  My shares are in my safe buried somewhere in North America, and that's all I'm sayin'.  Might have had a BOATING ACCIDENT.  CAN'T REMEMBER!!

LOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLOLLOOLOLOLOLOLOLOLOL

Couple things I never joke about, boy....  guns, god, metal and paper.   

MF

Sun, 07/01/2012 - 18:28 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

ruh roh, raggy

Maxipad is SUPER-SERIAL

Mon, 07/02/2012 - 18:30 | Link to Comment akak
akak's picture

I miss your old byline:  "Max Fischer, Feces Mundi".

Or was that:  "Max Fischer, Uncivil Coatimundi"?

Thu, 06/28/2012 - 17:16 | Link to Comment fourchan
fourchan's picture

lol dogshit is now spelled rimm

Thu, 06/28/2012 - 17:39 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Max said:

In 2003, I bought RIMM at $120 and TOOK DELIVERY OF THE SHARES!

What did it take to get Cede & Co. to send you the actual shares? Did they make you go through a lot of red tape?

Thu, 06/28/2012 - 18:58 | Link to Comment Prometheus418
Prometheus418's picture

Alright Max, I have to admit that was pretty funny.  You're still a douche, but at least that one made me chuckle a little.

 

Thu, 06/28/2012 - 16:45 | Link to Comment veyron
veyron's picture

I hear they are looking for a 'turnaround specialist'

Thu, 06/28/2012 - 17:17 | Link to Comment bdc63
bdc63's picture

I just got a look at their turnaround plan ... I can't give away too much information, but I can leak this:  buy a Blackberry, get a Superman towels.  Remember, you heard it here first.  Rip you face off rally should commence tomorrow.

Thu, 06/28/2012 - 17:20 | Link to Comment old naughty
old naughty's picture

What, they finally ran out of Spiderman towels?

Thu, 06/28/2012 - 17:40 | Link to Comment robertocarlos
robertocarlos's picture

The market must be on drugs if it's ripping people's faces off. Remember, only dopes smoke dope.

Thu, 06/28/2012 - 17:24 | Link to Comment Skateboarder
Skateboarder's picture

Janitors, to make empty some office spaces after the next round of layoffs.

EDIT: lol, I guess that time has already come.

http://www.bbc.co.uk/news/business-18631702

Thu, 06/28/2012 - 17:44 | Link to Comment whatsinaname
whatsinaname's picture

Race to the bottom - RIMM, NOK or the EUR ?

Thu, 06/28/2012 - 16:36 | Link to Comment TruthInSunshine
TruthInSunshine's picture

And the original prototype of using child-slave labor in third world nations to produce 'products' that people in developed nations would kill and die for, Nike, isn't doing so hot, either.

 

Hmmm. Can Air Jordans be purchased on yo EBT?

Thu, 06/28/2012 - 16:40 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

4/25/12 Short NKE

Their business model of shipping $150 shoes half-way around the world to people making $12/hr has topped.

 

Thu, 06/28/2012 - 16:43 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Nike Hyperdunk 2010

 

Bernanke blushes.

Thu, 06/28/2012 - 16:43 | Link to Comment otto skorzeny
otto skorzeny's picture

combat boots look better

Thu, 06/28/2012 - 16:58 | Link to Comment hack3434
hack3434's picture

ThEy AiNt GotZ nuThiNg on the Addidas shackle shoes http://multimedia.heraldinteractive.com/images/20120619/c0962a_adidas61912.jpg

 

Thu, 06/28/2012 - 17:42 | Link to Comment otto skorzeny
otto skorzeny's picture

the value of those things must have skyrocketed if anyone could get ahold of them. FEMA is interested in them for their "basketball camps" but the shackles run from one shoe to the other to the ankle and are made out of steel chains

Thu, 06/28/2012 - 16:42 | Link to Comment bdc63
bdc63's picture

If my 13 year old nephew's closet is any indication, NIKE should be doing just fine ...

Thu, 06/28/2012 - 16:35 | Link to Comment otto skorzeny
otto skorzeny's picture

just die already

Thu, 06/28/2012 - 16:40 | Link to Comment bdc63
bdc63's picture

Anybody still in RIMM deserves to get burned.  Andrea Bocelli could have seen this coming from a mile away ...

Thu, 06/28/2012 - 16:40 | Link to Comment BeetleBailey
BeetleBailey's picture

Blackberry colored balls

Thu, 06/28/2012 - 16:40 | Link to Comment humblepie
humblepie's picture

Give the dying man some respect.

Thu, 06/28/2012 - 16:47 | Link to Comment XtraBullish
XtraBullish's picture

Goddam Yanks purposely torpedoed RIMM with naked shorting, false rumours and the JPMprgue manipulation crap. Nothing compares to the Crackberry in the space and after RIMM declares bankruptcy, there will be a great many investment bankers in rehab without those crackee's causing them to run into walls while walking and reading...

Thu, 06/28/2012 - 16:53 | Link to Comment pods
pods's picture

So the only phone that actually is secure is going to go by the wayside?

Sweet.  

Thu, 06/28/2012 - 22:21 | Link to Comment A Nanny Moose
A Nanny Moose's picture

Beta vs. VHS all over again. Perhaps RIMM should embrace Teh Pr0n?

Thu, 06/28/2012 - 16:53 | Link to Comment Hedgerow-
Hedgerow-'s picture

There was Nokia.

Then there was RIMM/BB.

They all went down to shit.

 

Now who would you guess is next?

 

 

Thu, 06/28/2012 - 16:55 | Link to Comment Conman
Conman's picture

Dont forget palm. HP wwas stupid enough to buy them out. Dont think anyone will make the same mistake with blackberry.

Thu, 06/28/2012 - 19:02 | Link to Comment Prometheus418
Prometheus418's picture

Samsung would be my guess.  

Thu, 06/28/2012 - 16:54 | Link to Comment Sandmann
Sandmann's picture

Damn sight better BB predictive texting than IPhone which is a nightmare.

Thu, 06/28/2012 - 16:55 | Link to Comment gjp
gjp's picture

Somehow managed to add to cash with all those losses ... mostly through liquidation of working capital, it appears.  In any case, working capital is now $3.4b and market cap is $3.8b at current levels.  78m subscribers, if they could just control spending on next gen ... don't see why a richer company with lots of cash and/or highly valued shares wouldn't take a run at this, either to get the subscribers on their platform or even just shut down spending and monetize.

I like piling on as much as the next guy but this one's pretty beaten up.  Totally dusted competitively, it's true, but the B/S is worth something close to what it's trading at now.

Thu, 06/28/2012 - 17:04 | Link to Comment robertocarlos
robertocarlos's picture

Us German loving Obam hating Canadians are pulling our hair out today. I lost at least 3 times already today.

Thu, 06/28/2012 - 17:09 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

i itried to ignore this shit, but my new blackberry sent the post anyhow,  BiCheZ!

Thu, 06/28/2012 - 17:12 | Link to Comment robertocarlos
robertocarlos's picture

If I didn't buy it at 14 then I'm not going to buy it at 7.

Thu, 06/28/2012 - 17:09 | Link to Comment ebworthen
ebworthen's picture

RIMM = clueless.

May as well buy a used typewriter at a garage sale with that $7.

Thu, 06/28/2012 - 17:10 | Link to Comment The Axe
The Axe's picture

FORD     Down big too...business in Europe bad, very bad....very ,very bad

Thu, 06/28/2012 - 17:11 | Link to Comment Ocean22
Ocean22's picture

i was a hard core bb lover, then i found iphone....haha .. I emailed RIM and told them what they needed to do to get me back...guess what?

Thu, 06/28/2012 - 17:12 | Link to Comment monopoly
monopoly's picture

I guess all those who have black berrys will have to switch soon when they turn out the lights at RIMM> NKE, not a happy picture. But this is all company specific, buy stocks. What a crock of shit this market is.

Thu, 06/28/2012 - 17:19 | Link to Comment Never One Roach
Never One Roach's picture
  • Finally, the firm will cut 5,000 jobs

Yes, finally.

Thu, 06/28/2012 - 17:21 | Link to Comment billsykes
billsykes's picture

This is another Nortel.

their blackberry 10 phone is vapor ware because they will be BK by then. I wouldnt even short this stock, nobody is going to buy it.

Typical CEO(s) arogance in technology.  Nortel, nokia, motorola, sony, blockbuster, and on an on.

 

Here's to you Rimm, circling the rim, you stupid cocksuckers.

 

 

 

Thu, 06/28/2012 - 17:29 | Link to Comment mjk0259
mjk0259's picture

Stupid? The founders and most of the early employees are already rich - very rich.

Thu, 06/28/2012 - 17:47 | Link to Comment billsykes
billsykes's picture

in modern terms- where failure is winning and winning for founders or insiders is fucking over shareholders and their employees slaves. I agree with you, yes they did win. 

 

But what I was speaking to- actually building something, creating a proper succession plan, exiting the CEOs after a certain point (2004) and getting a new guy to take it to the next level so the company can innovate, stay competitive, create great jobs and make products people like.

 

Thu, 06/28/2012 - 17:52 | Link to Comment mjk0259
mjk0259's picture

Over a 100 year period, almost every single company will go bankrupt or disappear usually leaving a pile of unpaid debts and maybe some toxic waste sites behind. The wealth a company creates consists primarily of the salaries and taxes they pay while alive and the skills employees learn that might be applied somewhere else and maybe some inventions.

RIMM declines. Apple rises. Doesn't really matter unless you work at one of those places or live in a town with a lot of their employees.

 

Thu, 06/28/2012 - 17:28 | Link to Comment Vince Clortho
Vince Clortho's picture

All this gloom and doom is simply based on the economy going down the tubes into a bottomless pit.

Look for a Big Bounce Back tomorrow as the Central Manipulators find something extremely Bullish in this morass.

Triple Digit Friday!!!

Thu, 06/28/2012 - 19:19 | Link to Comment jonjon831983
jonjon831983's picture

Central Manipulators too scared of this dog with fleas.  They've got better targets.

Thu, 06/28/2012 - 17:28 | Link to Comment Catullus
Catullus's picture

Look at how much money you're costing them by not buying their product!!!! Now all of the RIMM customers have to bear your burden. You should be ashamed of yourselves. All of you should be fined (taxed) for not buying their product and service, fucking free riders.

Thu, 06/28/2012 - 17:38 | Link to Comment Dubious Maximus
Dubious Maximus's picture

i don't know if rimm will be around for q1 2013 at this point

Thu, 06/28/2012 - 17:38 | Link to Comment RmcAZ
RmcAZ's picture

So sad... They deserve a bailout so all those RIM jobs can be saved. Then Obama can take credit for "creating or saving" 5,000 RIM jobs.

Thu, 06/28/2012 - 17:40 | Link to Comment crawldaddy
crawldaddy's picture

RIMM used to be everyone's darling,  this may just be apples future.  Without Job last time they floundered, I dont see any more magic devices coming from them.

 

Apple meet your future, its RIMM

Thu, 06/28/2012 - 17:55 | Link to Comment mjk0259
mjk0259's picture

Eventually yes but Apple did it 4 times - mac, ipod, iphone,ipad. Rimm only once. TV still to go maybe. Ever try to use a TV at someone else's house with the multiple remote controls with 100 buttons each....

 

Thu, 06/28/2012 - 19:08 | Link to Comment eclectic syncretist
eclectic syncretist's picture

It's levitating downwards, like Nike and Ford.

Not like Smith and Wesson though.

http://www.marketwatch.com/story/rim-nike-shares-hit-hard-after-hours-20...

http://www.youtube.com/watch?v=vCWdCKPtnYE

Thu, 06/28/2012 - 19:38 | Link to Comment jonjon831983
jonjon831983's picture

Read that before release... had a lol

Thu, 06/28/2012 - 19:20 | Link to Comment beatus12
beatus12's picture

I listened to the con call, not all is lost

1. cash up slightly, no debt

2. one product has sold out

3. revenues up in the US but just barely

4. 1 b cost savings ahead with restructing and man. streamlining

5. license agreements are solidly nearing

6. enterprise is still upgrading bbm 5/6 to 7

all in all barely treading but maybe not dead just yet, stay tuned

this could be a survivor on some level

 

Thu, 06/28/2012 - 19:37 | Link to Comment jonjon831983
jonjon831983's picture

@ some level.

 

2. They've cut suppliers off in anticipation of BB10 roll out.  Sold out could just mean leftover supply is expended.

6. Wait... enterprises still at BBM 5/6 and moving to 7?  So... they're waiting to get to BBM 10?

 

Thu, 06/28/2012 - 19:50 | Link to Comment beatus12
beatus12's picture

Jonjon, they have 56 bbm customers but many of them

still operate on the older blackberrys and many are now

upgrading to the 7. The BBM 10 is not another  junk device

(korean) it's a platform - really brilliant actually but maybe still

too late. I'm gonna bet this company can remake itself

and surprise against all the odds and many wanting to

to see it's demise.

 

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