Future prospects of Research in Motion Ltd., (NASDAQ:BBRY) seems bleak
Shares of Research in Motion Ltd., (NASDAQ:BBRY) rose 0.93% to close at $9.64. This has been on the lower end of its 52-week price range of $6.22 to $18.32. However, shares remained heavily traded, with 29.80 million shares exchanging hands, against the average volume of 25.96 million. The market capitalization stood at 4.97 billion.
The jump in share prices should be seen as a positive signal from the market in anticipation of the outcomes of the annual meeting of shareholder’s that is to happen today. However, the company has plenty to prove, especially explaining why it has gone into selling off the company bit by bit. Also, it is expected that shareholders would approve and vote for the official change in name from Research in Motion to Blackberry.
It will also have to storm shareholders, in light of the disappointing earnings it had posted recently. The news was a surprise for the market as well. It is said that it would have been better for shares of Blackberry to have announced such loss, rather than directly shocking the market, thereby saving itself from the sharp decline in its shares.
To add to its woes, Assets Management specialist Donald Yacktman expressed that chances for Blackberry to recover are slim.
As for the future, the management at Blackberry will have to work more than before, to win back both – its customers and the trust of its shareholders. Also, such depressed earnings should not be seen as an end for Blackberry. It is further speculated that another fall of 30% in EPS is awaited in the near future. Yacktman too commented that his fund had a position in Blackberry when the stock was less than $7 per share, abut sold all of them at $13-14 per share. This was in anticipation of the bleak future prospect the company has, and he has not made it late to pull out, before things turn ugly for him. This has set a mood among investors that future growth in Blackberry may be bad, if not stable.