If you are in Canada, you would realize the weight of this blog's title. Of late there's been a strong correlation between RIM's performance & TSX's performance.
RIM is a household pride & is the newest face of Canadian technology prowess.
Today's value is the lowest in more than a year.
There have been two opposing reasons given for this downturn.
Some market analysts say that this negative dip is in line with the current global cues that hasn't spared even the best performers. More specifically, RIM has been over-evaluated for quite sometime & this downward slide was market correction.
On the other hand, RIM sympathizers argue that the reason was that RIM's Q3 results haven't met the market expectations. The market was expecting a return of 98 cents per share whereas the actual earnings have been around 88 cents!!
The markets may seem to be a little too severe on this company. Given the kind of cutthroat competition that's happening in mobile handset business, its imperative for RIM to invest more into R&D and bring out several more products to retain its market share.
RIM officials have clarified that R&D costs that were incurred in the present quarter will show profits in the coming quarters.
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