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


Communications equipment

Trailing-12-Month Revenue

$15.1 billion


CEO Thorsten Heins (since January 2012)
CFO Brian Bidulka (since December 2009)

Return on Equity (average, past 3 years)


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.

Just yesterday, one of those bears, Justin Loiseau (TMFJLo), tapped RIM's recent surge as particularly unsustainable:

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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