Avoid This Classic Value Trap

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The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Research In Motion continues to struggle under the relentless pressure from the competition. In fact, David feels it's a classic value trap that investors should avoid. Ultimately, there's a lot of evidence that shows the business is declining. So it may burn cash while its patents lose value. That leads to a situation in which the stock price is falling but it's still not cheap. David thinks investors should consider Apple in this space rather than Research In Motion. It's always better to go with a leader than get stuck in a trap.

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At the time this article was published David Meierowns shares of Apple.John Reevesowns shares of Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.Motley Fool newsletter services recommendApple, Google, Microsoft, and Nokia. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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