Monday, April 2, 2012

RIMM: The Long View

Now that RIMM's quarterly earnings are negative, the question arises whether it's in a hopeless death spiral or, like Apple in the late '90s, needs a little time to finish a major OS transition.

Will RIMM turn out a differentiated enterprise product by year-end, or die the death of low-volume firms competing on price?

This and more are addressed at Seeking Alpha in my latest article and in its comments.

For perspective, I've not exactly bet RIMM will fail but have picked it as the short leg of a AAPL/RIMM long/short based on the superior competitiveness of AAPL over the next few quarters. The argument there is in Apple: The Long And The Short If It.

There are enough partisans who believe RIMM will turn things around that it's certain there's room for further decline, particularly if the company burns cash trying to re-establish brand and share after its recent share losses and technical failures.

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