Is Research In Motion (RIMM) Too Canadian to Fail?
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With Research In Motion (Nasdaq: RIMM) finding out something that the rest of the market knew years ago - that no one wants a BlackBerry - there is an important question that needs to be asked: Is the company too Canadian to fail?
The Waterloo, Ontario-based smartphone maker is a very important part of the Canadian tech scene and psyche for that matter. Comments today from Canada's Finance Minsiter Jim Flaherty now have speculators asking if the government of Canada would step in to help the company, if needed.
Following yesterday's profit warning and strategic review news, Flaherty was quoted Wednesday by Dow Jones News as saying, "It's an important Canadian company so I hope they succeed in their restructuring."
In a separate statement, the government declined to comment about a potential takeover of the company, although it would have to be approved by the country.
Industry Minister Christian Paradis told Reuters, "I wish RIM every success and hope to see them grow and maintain their world leading position. However, I will not comment on speculation."
With $2 billion in cash and investments it is unlikely that Research In Motion would need a bailout anytime soon. However, if the company continues on its precipitous downward spiral a government bailout would not be out of the question.
A potential bailout could come in the form of low or zero-interest loans, tax breaks and other incentives.
RIM speculators need to ask themselves: "Is there a Canadian put in RIM?" Trade accordingly.
The Waterloo, Ontario-based smartphone maker is a very important part of the Canadian tech scene and psyche for that matter. Comments today from Canada's Finance Minsiter Jim Flaherty now have speculators asking if the government of Canada would step in to help the company, if needed.
Following yesterday's profit warning and strategic review news, Flaherty was quoted Wednesday by Dow Jones News as saying, "It's an important Canadian company so I hope they succeed in their restructuring."
In a separate statement, the government declined to comment about a potential takeover of the company, although it would have to be approved by the country.
Industry Minister Christian Paradis told Reuters, "I wish RIM every success and hope to see them grow and maintain their world leading position. However, I will not comment on speculation."
With $2 billion in cash and investments it is unlikely that Research In Motion would need a bailout anytime soon. However, if the company continues on its precipitous downward spiral a government bailout would not be out of the question.
A potential bailout could come in the form of low or zero-interest loans, tax breaks and other incentives.
RIM speculators need to ask themselves: "Is there a Canadian put in RIM?" Trade accordingly.
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