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  1.    #1  
    Hi all,


    FYI.

    Take care,

    Jay

    June 21, 2011
    RIM Jumps on Job Cut Reports, Takeover Talk
    By REUTERS

    http://www.nytimes.com/reuters/2011/...gewanted=print

    TORONTO (Reuters) - Research In Motion's shares rose around 10 percent on Tuesday as reports surfaced that it had begun cutting staff and rumors of a takeover swirled around the BlackBerry maker.

    Shares of RIM, which once dominated the business segment of the smartphone market, have dropped more than 50 percent this year after a series of stumbles in the race to keep up with fierce competition from Apple Inc and others in the smartphone and tablet computer markets.

    But shares of the Waterloo, Ontario-based company jumped $2.66, or 10.3 percent, to $28.55 on Nasdaq and C$2.33, or 9.2 percent, to C$27.74 in Toronto on Tuesday, bouncing back somewhat from what had been a 27 percent slide after it revealed dismal quarterly results and lowered its full-year outlook on Friday.

    "It's a classic bounce off the bottom," said Colin Gillis, an analyst at BGC Partners in New York.

    He said that reports that company began handing out pink slips to an unspecified number of its 17,500 workers globally, including 9,000 in the Waterloo region, may have helped. Local media reports said about 200 had been laid off in Waterloo.

    "The talk was that they were starting to cut heads and if they can reduce costs faster than expected, that shows decisive action," he said.

    A spokesman for the company could not be reached immediately to confirm the media report about layoffs, though RIM said on Friday it did plan to cut staff.

    With the company's stock getting cheaper, takeover rumors have been surfacing in the market, and while Gillis said he's heard them, he said he does not believe they will pan out.

    He said the company's management has been aggressive about buying back RIM's own stock, and that while company is worth less than it was at the beginning of the year, it still has a market cap of nearly $14 billion.

    "And that's a lot of change to come up with."

    John Jackson, an analyst at CCS Insight in San Francisco, said he thinks that there will be a lot more takeovers in the mobile market, and that RIM could be a target.

    At the same time, he said, investors could just be betting that RIM will make it through the turbulence.

    "I absolutely think there's a chance that RIM could turn it around and get back in there," he said.

    "I also think there's a good chance that there's a lot more M&A activity that's going to happen in the market whether or not RIM is involved."

    ($1=$0.97 Canadian)

    (Reporting by John McCrank and Julie Gordon; editing by Rob Wilson)
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  2.    #2  
    Hi all,

    Here is some additonal background info, Please sue the link to read the balance of the article.

    Take care,

    Jay

    RIMís Plunge May Beckon Microsoft, Dell
    By Hugo Miller and Danielle Kucera - Jun 21, 2011 4:32 PM ET

    RIM

    Research In Motion Ltd. (RIMM) has lost so much value that an acquirer could pay a 50 percent premium and still buy the BlackBerry maker for a lower multiple than any company in the industry.

    RIM, once worth $83 billion, fell more than 80 percent from its record three years ago as Apple Inc. (AAPL)ís iPhone and Google Inc. (GOOG)ís Android platform siphoned off smartphone customers. The Waterloo, Ontario-based company, which plunged last week after saying quarterly sales may drop for the first time in nine years, closed yesterday at $25.89 a share, or 4.7 times earnings next year. Thatís less than any communications-equipment provider, according to data compiled by Bloomberg.
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  3. #3  
    Yo, RIM, how's about cutting executive management's salary compensation down to maybe, say, $100k - 200k/year, with no bonuses for the forseeable future, instead of laying off the people who actually get the work done for you?

    I bet you will save tons more money!



    Sorry, just had to.. sigh!
    "The more I learn, the more I realize just how little I really do know!" -Albert Einstein

  4. #4  
    That's too bad. I hate to see job cuts, it's always the little man that suffers when the big man, in this case the co-big men, screw up.

    There are two immediate cuts that may have a significant difference on Wall Street perception.

    Imagine if you had 10,000 invested in RIM in 12/10. How much would that be worth now?

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