4 ms·

Anyone who invested in this company post-iPhone 4 and post-"co-CEO" RIM deserved to lose their money.

by geori 14y ago

rdl 14y ago
I invested when they were around $11, thinking the patent, bbm, enterprise management crossplatform, M&A, and residual sales in third world markets would be worth something, and that the market had overreacted. IMO there's a difference between good companies and good stocks in the public market. A cheap price on an ok company can be a good investment; a high price on a good or great company can be a mediocre investment. Kind of the opposite of startups or other illiquid private investments (which largely have a binary outcome). I'm starting to think they'll go out at $8-12 though.
- runako 14y ago
  >> I'm starting to think they'll go out at $8-12 though. Why? What would justify a premium over the after-hours $7.70? Wouldn't a savvy acquirer just wait another quarter or two to get a better price? What's the rush? At the rate they are destroying value, it would seem more likely that they go out for much less than $8.
  - rdl 14y ago
    Usually there is a premium over last trade, and the patents are potentially useful to trolls, etc. now. The main reason for a sale to happen now vs. waiting a year would be if some kind of competitive bidding happened. The big change is that RIM's (worthless) board and senior management are now open to the idea, unlike the previous several years of decline (where it was obvious to everyone, but RIM wouldn't do anything).
  - goodcanadian 14y ago
    Their book value is more than $19. Even the liquid assets minus all liabilities is $6.60. Are you saying that all of their property, patents, and future revenue (decidedly non-zero) are worth less than $1.10?
    - runako 14y ago
      I haven't researched the stock rigorously, so I don't have a good answer to this. But given their massive losses, they will be drawing down their liquid assets and increasing liabilities. And book value for large companies frequently consists of intangible (i.e. made up) numbers for goodwill, IP, etc., which may prove unrealistic.
reiichiroh 14y ago
Even during the co-CEO period.

Anyone who invested in this company post-iPhone 4 and post-"co-CEO" RIM deserved to lose their money.

by geori 14y ago

Anyone who invested in this company post-iPhone 4 and post-"co-CEO" RIM deserved to lose their money.

rdl 14y ago

I invested when they were around $11, thinking the patent, bbm, enterprise management crossplatform, M&A, and residual sales in third world markets would be worth something, and that the market had overreacted. IMO there's a difference between good companies and good stocks in the public market. A cheap price on an ok company can be a good investment; a high price on a good or great company can be a mediocre investment. Kind of the opposite of startups or other illiquid private investments (which largely have a binary outcome). I'm starting to think they'll go out at $8-12 though.

runako 14y ago
>> I'm starting to think they'll go out at $8-12 though. Why? What would justify a premium over the after-hours $7.70? Wouldn't a savvy acquirer just wait another quarter or two to get a better price? What's the rush? At the rate they are destroying value, it would seem more likely that they go out for much less than $8.
- rdl 14y ago
  Usually there is a premium over last trade, and the patents are potentially useful to trolls, etc. now. The main reason for a sale to happen now vs. waiting a year would be if some kind of competitive bidding happened. The big change is that RIM's (worthless) board and senior management are now open to the idea, unlike the previous several years of decline (where it was obvious to everyone, but RIM wouldn't do anything).
- goodcanadian 14y ago
  Their book value is more than $19. Even the liquid assets minus all liabilities is $6.60. Are you saying that all of their property, patents, and future revenue (decidedly non-zero) are worth less than $1.10?
  - runako 14y ago
    I haven't researched the stock rigorously, so I don't have a good answer to this. But given their massive losses, they will be drawing down their liquid assets and increasing liabilities. And book value for large companies frequently consists of intangible (i.e. made up) numbers for goodwill, IP, etc., which may prove unrealistic.

reiichiroh 14y ago

Even during the co-CEO period.