1-Star Stocks Poised to Plunge: Research In Motion?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, embattled BlackBerry maker Research In Motion (Nasdaq: RIMM) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at RIM's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Waterloo, Canada (1984)|
|Market Cap||$4.1 billion|
|Trailing-12-Month Revenue||$15.1 billion|
|Management||CEO Thorsten Heins (since January 2012)|
CFO Brian Bidulka (since December 2009)
|Return on Equity (average, past 3 years)||22.7%|
|Cash / Debt||$2.1 billion / $0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 24% of the 5,812 members who have rated RIM believe the stock will underperform the S&P 500 going forward.
Unexpected positive quarterly earnings drove the stock price up, but it's on an inevitable downfall. Sales in some emerging markets (i.e. Indonesia) may seem to be a good sign, but there's very low switching costs and customers will continue to gravitate away from RIM's products as better and cheaper alternatives continue to hit the markets.
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