We just wrote about the colossal value trap that is Research In Motion(RIMM) at Inelegant Investor. We should warn you that when the post was syndicated at Seeking Alpha, one commenter called it “Obsolutely[sic] the dumbest article yet this year!”
An additional sign of the company’s desperation was reported today. As the company attempts to release its long-delayed(but not particularly anticipated) Blackberry 10 Operating System, it is having workers work six day weeks and cancel previously planned vacations. As recently as last week, the company delayed the launch yet again, pushing it into next year. Some have begun to doubt whether the company will ever release it. The truth is, it doesn’t matter.
The company is not producing a product people want, and there is no indication that if Blackberry 10 were magically ready today, that anyone would actually care. The desperate measures the company is taking will further reduce morale and push the best and brightest employees out the door.
Some “turnaround stocks” don’t turn, and we believe strongly that RIM is one of them. We would caution all to avoid it, though we believe the risk of a patent sale or sale of the company make shorting the stock inadvisable.
Disclosure: The author holds no position in any stock mentioned
