Research in Motion stock sinks to 2003 low
June 4, 2012: 3:06 PM ET
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Research in Motion just can't catch a break. Investors continued to beat up the company's stock for a fourth consecutive day Monday amid growing speculation that the BlackBerry maker will soon put itself up for sale.
Shares of RIM (RIMM) sank another 6.7% Monday and fell below $10, hitting the lowest level since December 2003. Ever since the company announced last Tuesday that it had hired investment banks JPMorgan (JPM) and RBC Capital to "review" its strategic options, which is corporate speak for potentially selling all or parts of the company, shares of RIM have dropped about 14%.
In the "business update" highlighting RIM's challenges, CEO Thorsten Heins, who first mentioned the possibility of a sale in March, said the company's financial performance will continue to be rocky for the next few quarters amid severe competition that's been cutting into its sales.
RIM now trails Samsung, Apple (AAPL) and Nokia (NOK) in the smartphone races, according to the most recent report from market research firm IDC. In fact, global shipments of BlackBerry devices plunged 30% year-over-year at the end of the first quarter.
The company is slated to launch devices with its BlackBerry 10 platform later this year, but at least until then, IDC expects ongoing weakness.
The company expects to post a loss for the first quarter when it reports results later this month.
