RIM’s company Logo – Image from sync-blog.com (http://www.sync-blog.com/wp-content/uploads/2012/05/rim_logo_blue.jpg)
The once powerful technology company, RIM, has taken a hit in the past year. Its share price closed today (September 27th, 2012) at $6.96, under three times less than it was this time last year. Furthermore, although the company’s revenue is at a grand $2.9-billion, it is down 31% from the same point last year.
But how is this good for RIM? Well, although the technology giant is down from last year, it is doing better than most analysts expected. Its revenue is up from the first quarter and the less-than-expected disclosed losses bumped its share price up to $8.62 in after-hours trading.
From a non-expert standpoint, I don’t see RIM going bankrupt any time soon. RIM has too much invested in research and development and intellectual property to go under. In my mind, the company can follow one of two routes. Either, with the release of its Blackberry 10 line in 2013, RIM will slowly regain its position among the top mobile technology developers, or it will be bought out by another technology giant. In either case, this company just seems to be “too big to fail.” Now, this doesn’t mean that I’m going to invest my college fund in RIM, but I’d be surprised if its share went anywhere but up in the next five years.
To see the Globe and Mail article click here here.