Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, BlackBerry maker Research In Motion (Nasdaq: RIMM ) has received a distressing two-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||$25.7 billion|
|Trailing-12-Month Revenue||$16.86 billion|
Co-CEO James Balsillie
Co-Founder/Co-CEO Michael Lazaridis
|Return on Capital (Average Past 3 Years)||35%|
Apple (Nasdaq: AAPL )
Nokia (NYSE: NOK )
Google (Nasdaq: GOOG )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 17% of the 5,367 members who have rated RIM believe the stock will underperform the S&P 500 going forward. These bears include All-Star elkwingcaddis, who is ranked in the top 10% of our community, and rpgizzle.
Earlier this month, elkwingcaddis touched on the obvious concern facing RIM: "Competition from iPhone, iPad, and Android phones will put significant pressure on the Blackberry in coming years. [RIM] will lose significant market share in the corporate mobile market resulting in downward pressure on their stock price."
Naturally, ever-increasing smartphone competition continues to worry Fools about RIM's long-term prospects. While the BlackBerry is still North America's smartphone to beat, RIM's lead is quickly being eroded by the iPhone and, particularly, Google Android-based phones. According to CAPS member rpgizzle, RIM just isn't strong enough to reverse that bearish trend:
It's clearly obvious that RIM can't compete with Apple and Google. Although the Apple devices are superior in form factor, the main difference is the software. Blackberry just doesn't provide enough value and a quality user experience. Even the new 6.0 Blackberry O/S is lacking. Its cumbersome and slow to respond compared to the Iphone 4. ...
The technical specs of the phones are impressive, but the software experience is just not there. For this reason, Blackberry will slowly fade into the background like Nokia and Motorola (NYSE: MOT ) (although they are trying for a big comeback).
With the Torch, Blackberry had the opportunity to make a leap forward, however, the phone does not even exceed the capabilities or ease of use of current market offerings. That is disappointing. The general trend is that the newest phone should be the best. When you miss the mark, it shows that management hasn't properly benchmarked the competition, rushed the product to market, or didn't spend enough on R&D. In RIM's case, it's likely a combination of all three of these issues.
What do you think about RIM, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!