Barrons financial weekly made a concession in its June 20th edition. The newspaper says it goofed” in its optimistic view of BlackBerry-maker Research in Motion two months ago.
The companys best hope now is a takeover, but theres no suitor in sight,” Barron’s said. Cheap as the stock has become, the only choice is to sell.”
The newspapers biggest mistake? Putting too much faith in RIMs management, namely co-CEOs Mike Lazaridis and Jim Balsillie.
Theyve not only disappointed us; theyve done worse than some bears expected,” Barrons wrote.
RIMs earnings last week disappointed financial analysts, employees and investors, reportedly driving its stock price down to the lowest level in five years.
Deutsche Bank analyst Brian Modoff is among the skeptics.
RIMs product line has looked increasingly dated over the past year as newer smartphones have come to market,” he wrote in a research note last week. Moreover, it is difficult to see their prospects brightening any time soon.”
RIM has seen its BlackBerry smartphones take a huge hit in market share as it faces off against the iPhone and an onslaught of Android-based devices. Sales of the new PlayBook tablet have met analysts’ expectations, but they haven’t been enough to spur confidence.
Last week, RIM announced that job cuts were coming in the wake of its latest earnings report.