Marketplace Tech Report is not the most likely program in the Marketplace portfolio to do stock analysis but we have to take note of this one. Research In Motion, makers of BlackBerry, saw its stock drop yesterday to a value lower than the sum of its parts.
From Bloomberg:
“This is a wounded puppy,” Timothy Ghriskey, who oversees $2 billion as chief investment officer of Solaris Group LLC in Bedford Hills, New York, said in an interview. “They’ve been losing business, there’ve been operating technology problems. There isn’t a lot of customer loyalty anymore.”RIM fell 2.9 percent to $18.37 at 10:27 a.m. New York time, trailing the book value of $18.92 a share at the end of last quarter, according to data compiled by Bloomberg. The measure comprises a company’s assets including cash, inventories, real estate and intellectual property minus its liabilities.
Basically, no one has faith in it any more. The PlayBook tablet has been a dud in terms of sales and the company has been sluggish in trying to improve it. BlackBerry had that infamous outage a while back, which soured the existing customers, many of whom either dropped it or plan to when contracts expire. For a company that helped INVENT the smartphone market and whose signature product was considered the status symbol for the technologically forward-looking, things have gotten rough.
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