RIM has had more ups and downs than a roller coaster ride lately. Here’s an up for RIM:
Donald Yacktman, whose US$19 billion mutual-fund firm has outperformed peers by picking undervalued stocks, is leading a rush of investors betting Research In Motion Ltd. and its BlackBerry smartphone can recover.
Yacktman Asset Management bought 12.2 million RIM shares last quarter, doubling the firm’s stake to about US$252 million, according to data compiled by Bloomberg. Yacktman sees value in the BlackBerry’s 80 million users worldwide, its physical keyboard and the promise of a new operating system, even as the phone’s U.S. market share drops to less than 2% from 8.5% a year ago.
Clearly they see something that a lot of people don’t. That’s good for RIM. Here’s another up for RIM:
Goldman Sachs GS -0.79% is the latest to jump on the bullish train, boosting its rating to buy from neutral and lifting its price target to $16 from $9. The firm, as others have, cited growing optimism around RIM’s new smartphones, which are expected next year.
“For the first time in three years, we think out-year Street estimates are too low,” Goldman analysts wrote in a note to clients Thursday morning.
Okay. So more than one person feels that RIM has a pulse. But here’s something that’s a down for RIM:
For years, CIOs have watched iPhones force their way onto corporate networks. Now IDC reports that iPhone shipments will surpass BlackBerry shipments in the enterprise this year, noting that companies are buying iPhones “in droves.”
The report states: “By the end of 2012, Apple iOS will be the number one corporate-liable operating system device by volumes shipped. It is expected to hold onto this position throughout 2016.”
If you read the rest of the article, you’ll see the number 1 reason for this. Many employers are allowing employees to bring their own device to work. Those devices aren’t BlackBerries. Unless RIM can make the BlackBerry sexy again, then they’re doomed. It’s as simple as that.
This rollercoaster I suspect will continue until January 30th. That’s when RIM’s media event happens and that will define whether RIM lives or dies.