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, BlackBerry maker Research In Motion (NAS: 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.
RIM facts
Headquarters (Founded) | Waterloo, Canada (1984) |
Market Cap | $6.9 billion |
Industry | Semiconductors |
Trailing-12-Month Revenue | $18.4 billion |
Management | CEO Thorsten Gerhard (since January 2012) |
Return on Equity (Average, Past 3 Years) | 30% |
Cash/Debt | $1.8 billion / $0 |
Competitors | Apple |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 22% of the 5,739 members who have rated RIM believe the stock will underperform the S&P 500 going forward.
Earlier this year, one of those Fools, TMFBoomer, succinctly summed up the bear case for our community:
RIM's mobile devices underwhelm relative to its peers. The company's BlackBerry was praised for its security platform, a software technology that can now be utilized by competitors Apple and Google. I am not sure what competitive advantage RIM currently has against much larger rivals. It will remain a niche player ... but otherwise, I don't see a bright future ahead.
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At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of Apple, Google, and Nokia, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter servicesfree for 30 days.We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.
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