Fourth quarter and year-end results are in and even though RIM came in slightly short of what the street was expecting for the fourth quarter the BlackBerry maker posted a 66% rise in sales and added over one million new subscribers.
The big news of the day, however, is that the informal stock-option grant review by the U.S. Securities and Exchange Commission has been upgraded to a formal review and on that news, RIMs stock price is down about 7%.
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Let’s correct the record here. The stock was getting hit for a few percent in after hours BEFORE they announced the formal SEC investigation. The barely in-line numbers for a growth stock sporting an absurd valuation also contributed to the 7% decline.
Let’s further correct the record. If you listen to or read a transcript of the conference call, you will hear/read why this stock is actually extremely cheap. Those who understand the fundamental story are buying today as weak hands sell.
The best trend that has just STARTED to occur (Balsillie referred to at as a light switch going on at the carriers) is that carriers all of the sudden realize that BBs drive their profitability (i.e. most BB users buy underpenetrated DATA). AND RIM’s core technology compresses data through their network operations centers.
A COMPANY THAT HELPS YOU BOTH MAKE MORE MONEY AND EFFICICIENTLY USE YOUR BANDWIDTH IS A VERY VALUABLE PARTNER.
Dumb money is fleeing…
LOL!! the conference call was filled with the same BS hype that has marked this company since its inception. Where are their audited financials? Why do they wait until earnings release to mention the SEC investigation? Look at the big funds exiting the stock. It’s the smart money running for the exits.