After Research in Motion’s disappointing second quarter fiscal 2012 results RBC Capital Markets analysts released a list of 4 challenges the firm believes RIM’s failure to address led up to the companies poor showing in Q2. RBC also believes that RIM’s valuation which is at an all time low (4x) won’t improve until this challenge areas are addressed.
RBC Capital Markets
In a note to investors earlier this afternoon, RBC Capital Markets Managing Director Mike Abramsky reiterated an OTR Global report that Research In Motion may be planning to halt production of the Wi-Fi only BlackBerry PlayBook. Even though half a million PlayBooks shipped during its first quarter, RIM warned that it wasn’t going to sell as many tablets in the coming quarters as it had originally projected. Abramsky sees a stoppage of production as an adjustment for existing inventory while RIM continues plans to deliver wireless BlackBerry PlayBook devices before years end.
In a note to investors today before Research in Motion’s annual shareholder’s meeting RBC Capital Markets Managing Director Mike Abramsky, is calling for RIM to break up it network and handset businesses in to separate companies.
RIM’s organization, like its handsets, needs modernization. By acting now, splitting RIM into network and handset businesses may target opportunities and unlock significant shareholder value. RIM’s end-to-end solution was conceived when data devices and networks were nascent — but times have changed…