Research In Motion (RIMM): Tech's Alcoholic Uncle

May 31, 2012 8:27 AM EDT
Research In Motion (Nasdaq: RIMM) somehow appears to be like the alcoholic uncle you know who has been through an intervention several times, each time promising to "get clean" yet ending up back in AA within a few months. Generally, this leads to emotional stress amongst the uncle and close members of the family; worse case, he ends up getting into a serious accident while driving drunk.

Except, it's worse at RIM because its denial stretches far beyond what most humans can compute. And its "drunk driving" is affecting the lives of thousands of workers and investors.

Here's the deal: RIM has a lock-down on smartphones with physical keypads and a decent email client. Other than that, its operating system is light years behind and app selection horrible at best. Shares, once at $140, have slipped down to $10 each. In most third-world countries, that's called "robbery." We can't imagine how many lawsuits are being thrown at the company right now.

Then, the company finally admits that things are not going its way. But, what's it currently doing? The WSJ said this morning its not actively shopping itself around. Not. Shopping. Itself. Around.

Even a two-year-old learns to not touch a hot stove.

This strategy might have made sense should RIM still be looking at turning a profit, but it's not. Due to poor everything, RIM stated in its recent release: "...we expect our Q1 results to reflect this, and likely result in an operating loss for the quarter." You can almost bet its second-quarter isn't going to fare much better. Or third. Maybe its fourth, too.

RIM is latching onto the idea that BlackBerry10 will save the company, but this isn't Tommy Boy. Most people don't care what kind of brake pads go on their vehicle so long as they work; the same can't be said for such a social device as a smartphone.

Worse yet, an aticle written yesterday said a sale "would have to be approved by the country." The "country" being Canada.

We just have two words for this nefarious "behavior:" Nortel Networks.

By the beard of Zeus, RIM is actually indicated for a higher open.

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