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.

RIM facts

Headquarters (founded) Waterloo, Canada (1984)
Market Cap $4.1 billion
Industry Communications equipment
Trailing-12-Month Revenue $15.1 billion
Management CEO Thorsten Heins (since January 2012)
CFO Brian Bidulka (since December 2009)
Return on Equity (average, past 3 years) 22.7%
Cash / Debt $2.1 billion / $0
Competitors Apple
Google
Nokia

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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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Apple and Google. Motley Fool newsletter services have recommended buying shares of Apple and Google, as well creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (2) | Recommend This Article (3)

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  • Report this Comment On October 02, 2012, at 2:11 PM, infektu wrote:

    short squeeeeeze....

    and nothing compared to what we'll see in 6 months, if BB10 is even half as good as advertised

    c'mon, keep it up a few more days...

  • Report this Comment On October 02, 2012, at 11:35 PM, snowboardleo wrote:

    @InfoThatHelp Could you explain what's so toxic about the patents?

    I think there are some competitors (let's think for a moment RIM is still competing) that could really put a couple of those to good use.

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