Hugo Miller and Matt Walcoff:
Research In Motion Ltd. (RIM)’s decline below book value for the first time in nine years leaves the BlackBerry maker worth less than the net value of its property, patents and other assets in a sign of investors’ lowered faith.
“This is a wounded puppy,” Timothy Ghriskey, who oversees $2 billion as chief investment officer of Solaris Group LLC in Bedford Hills, New York.
Investors had the chance to kick the co-CEOs to the curb at the last annual meeting and they didn’t. Instead they asked the pair softball questions and accepted their lame explanations. The downfall of the stock is as much the fault of the investors as it is the CEOs at this point.
Jim, usually I love your comments, but this one is… well, stock price goes up or down exactly because of the investors, who are buying or selling them. So either up or down it’s always, always investors fault. There are no other reasons at all.
My point is that investors could have saved themselves, but chose not to.
I can agree with you that stock prices often move for the wrong reasons – overzealous and panicky investors – but in the end people react to what a company does or doesn’t.
RIM is on a downward slope for a reason, or actually two and the stock market is reflecting this.
Strange culture in RIM, and self-destroy political environment.
In RIM if you figure out problem and introduce efficient approach, both manager and his buddy group member will proof their wrong approach works.
just like someone point out driving a car is right way, pushing a car is wrong way, then both manager and his buddy group member will hate you, and proof that 3 person can also move the car by pushing it.
This is one side of the strange culture, another side of RIM strange culture is like: because the manager and CEO are buddies as well , so people will say: yes, it is moving, pushing a car is really right way.
RIM is not system oriented company, just self-destruct small company buddy culture, with a fat body. it is very strange company culture and strange company political environment, RIM’s management may be a typical instance in MBA course.