TORONTO, June 17 (Reuters) - Research In Motion's (RIM.TO)
(RIMM.O)'s dismal results and failure to offer a clear strategy
to arrest its sad decline pushed its shares down more than 20
percent on Friday, drawing parallels with other technology
stars that have fallen from grace.
The BlackBerry maker's shares plummeted below $29, hitting
the lowest level in almost five years, the morning after it
missed some of its own limp forecasts and reported a drop in
quarterly profit. The shares are down more than 60 percent
since February.
And even more worrying, some of the company's largest
shareholders are showing signs of bailing out.
One of RIM's biggest investors, Jarisloswky Fraser, has
already cut its stake in half, according to Bloomberg.
Another investor is giving RIM six months to get its
business in order.
"I think in the next six months we'll have a much better
idea of where we stand," said the head of a fund with a major
stake. "They've laid out a business strategy and we're
measuring their ability to execute."
LOWER TARGETS
At least nine analysts lowered their price targets on the
stock, most of them highlighting what appears to be a
once-dynamic product development pipeline that's running dry.
RIM admitted delays in revamping an aging smartphone lineup
and slashed what most analysts viewed as an unattainable full
year earnings outlook. It also said it planned to cut an
unspecified number of jobs. [ID:nN16217792]
"Bottom line, we believe RIM has no short-term fixes to
improve product portfolio, brand perception, to reinvigorate
share gains, revenue growth and profitability," Citi's Jim Suva
wrote in a note to clients.
