RIM Update: Jaquar Leads Calls for a Shake-up, QNX Delay Could be Final Straw
The support for activist shareholder Jaguar Financial Corp seems to be growing each passing day as Research in Motion (NASDAQ:RIMM) faces the risk of escalation of dissident movement if its shares don’t rebound soon. [1] The pressure from shareholders continue to increase on RIM as the company continues to struggle against Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) in the smartphone and tablet markets. Its stock has declined at a rapid rate from a high of $70 at the beginning of the year to $19 as of today.
This is not the first time such campaign has gained momentum. A few weeks back, Jaguar Financial Corp said it has the backing of around 8% of the company’s investors supporting it in its campaign to urge the BlackBerry maker to sell itself, seek a merger partner or split itself into a number of companies. [2]
See our complete analysis for RIM stock here
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Our $26 price estimate for RIM stock is about 40% above market price.
We believe the company’s overhaul of its smartphone operating system from BlackBerry to QNX remains the only hope. We expect this migration to complete by early 2012. However, according to a report, the QNX migration could get delayed beyond the official Q1 2012 release. [3] This will be another setback to shareholders if such thing happens.
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Notes:
- RIM dissidents push for change at BlackBerry maker, Reuters, November 8th, 2011 [↩]
- Jaguar Says Support Grows for a RIM Shake-up, Reuters, Oct 11th, 2011 [↩]
- RIM: Barclays Cuts To Hold On QNX Delays, Barron’s, November 8th, 2011 [↩]