Market Summary


Earning Reports

Total Companies: (243) Stock Center View

Symbol Price EPS
AET 1.56 06:00 am ET
LUV 0.17 06:30 am ET
DST 1.12 07:00 am ET
FAF 0.07 07:00 am ET
PENN 0.05 07:00 am ET
RTN 1.77 07:00 am ET
STC -0.06 07:00 am ET
UA 0.04 07:00 am ET
CAT 1.24 07:30 am ET
VZ 0.87 07:30 am ET
ZMH 1.47 07:30 am ET
RS 1.24 08:50 am ET
EW 0.69 4:00 pm ET
FSL 0.24 4:00 pm ET
ITRI 0.27 4:00 pm ET
RGC 0.19 4:00 pm ET
WOOF 0.42 4:00 pm ET
SPWR 0.32 4:05 pm ET
ABAX 0.19 After Mkt
AFOP 0.32 After Mkt
ALTR 0.32 After Mkt
AMCC 0.00 After Mkt
AMZN 0.23 After Mkt
ATR 0.68 After Mkt
ATRC -0.22 After Mkt
AWAY 0.14 After Mkt
BAS -0.09 After Mkt
BGG 0.86 After Mkt
BIDU 5.91 After Mkt
BLDR 0.00 After Mkt
BRCM 0.46 After Mkt
CAMP 0.21 After Mkt
CB 1.56 After Mkt
CENX -0.14 After Mkt
CERN 0.37 After Mkt
CINF 0.55 After Mkt
CLF -0.15 After Mkt
CLMS 0.12 After Mkt
CRUS 0.32 After Mkt
CUDA 0.01 After Mkt
CYN 0.94 After Mkt
DCOM 0.28 After Mkt
DECK -0.15 After Mkt
DGII 0.01 After Mkt
DLA 0.13 After Mkt
DV 0.75 After Mkt
ECHO 0.11 After Mkt
EMN 1.58 After Mkt
EOPN -0.14 After Mkt
FBP 0.09 After Mkt
FICO 0.61 After Mkt
FII 0.37 After Mkt
FPO 0.23 After Mkt
GIFI 0.18 After Mkt
GIMO -0.07 After Mkt
HBI 0.58 After Mkt
HBOS 0.37 After Mkt
HITT 0.52 After Mkt
HMN 0.48 After Mkt
HWAY -0.12 After Mkt
INAP -0.07 After Mkt
INFA 0.34 After Mkt
INUV 0.00 After Mkt
KLAC 1.12 After Mkt
LEG 0.38 After Mkt
LSCC 0.06 After Mkt
LVS 0.93 After Mkt
MAS 0.17 After Mkt
MCRL 0.06 After Mkt
MKTO -0.29 After Mkt
MLNX 0.11 After Mkt
MMSI 0.13 After Mkt
MOFG 0.49 After Mkt
MPWR 0.26 After Mkt
MSCC 0.51 After Mkt
MSFT 0.63 After Mkt
MTSN 0.04 After Mkt
MTX 0.56 After Mkt
MXIM 0.39 After Mkt
NBHC 0.03 After Mkt
NEM 0.20 After Mkt
NKSH N/A After Mkt
NR 0.16 After Mkt
NTGR 0.54 After Mkt
OCFC 0.30 After Mkt
OLN 0.34 After Mkt
P -0.14 After Mkt
PCTI 0.07 After Mkt
PDFS 0.29 After Mkt
PEB 0.23 After Mkt
PFG 0.92 After Mkt
PGI 0.19 After Mkt
PKI 0.44 After Mkt
QLIK -0.13 After Mkt
RGA 1.73 After Mkt
RSG 0.44 After Mkt
SBCF 0.09 After Mkt
SBUX 0.56 After Mkt
SHOR 0.02 After Mkt
SIVB 1.57 After Mkt
SPN 0.21 After Mkt
SPSC 0.13 After Mkt
SRCL 0.99 After Mkt
SSD 0.18 After Mkt
STS 0.10 After Mkt
SWFT 0.12 After Mkt
SYNA 0.57 After Mkt
TCO 0.90 After Mkt
TFSL 0.05 After Mkt
TNAV -0.20 After Mkt
UACL 0.25 After Mkt
UCFC N/A After Mkt
UHS 1.22 After Mkt
V 2.18 After Mkt
VR 1.51 After Mkt
VRSN 0.63 After Mkt
WIRE 0.48 After Mkt
WRE 0.39 After Mkt
WRI 0.49 After Mkt
WSFS 1.31 After Mkt
AAL 0.48 Before Mkt
ABC 1.00 Before Mkt
ALXN 1.26 Before Mkt
AMAG -0.06 Before Mkt
AVT 1.08 Before Mkt
BC 0.60 Before Mkt
BCO 0.66 Before Mkt
BHE 0.31 Before Mkt
BKU 0.45 Before Mkt
BMS 0.57 Before Mkt
BNCL 0.04 Before Mkt
BTU -0.01 Before Mkt
CAB 0.37 Before Mkt
CAM 0.72 Before Mkt
CCE 0.44 Before Mkt
CCMP 0.38 Before Mkt
CCO -0.15 Before Mkt
CELG 1.65 Before Mkt
CLI 0.47 Before Mkt
CMS 0.71 Before Mkt
CNMD 0.47 Before Mkt
COBR -0.19 Before Mkt
COG 0.26 Before Mkt
COR 0.48 Before Mkt
CPF 0.18 Before Mkt
CRAI 0.27 Before Mkt
CRR 0.87 Before Mkt
CRS 0.57 Before Mkt
CSH 1.52 Before Mkt
CWEI 0.79 Before Mkt
DDE 0.01 Before Mkt
DEST 0.26 Before Mkt
DFT 0.30 Before Mkt
DGX 0.88 Before Mkt
DHI 0.34 Before Mkt
DLPH 1.08 Before Mkt
DLX 0.95 Before Mkt
DNKN 0.36 Before Mkt
DO 0.65 Before Mkt
DVD -0.06 Before Mkt
EFSC 0.37 Before Mkt
EQM 0.59 Before Mkt
EQT 0.86 Before Mkt
ETR 1.58 Before Mkt
FBNK 0.09 Before Mkt
FNFG 0.17 Before Mkt
GM 0.04 Before Mkt
GMT 0.76 Before Mkt
GPI 1.04 Before Mkt
GPK 0.13 Before Mkt
GTI -0.02 Before Mkt
HOT 0.56 Before Mkt
HP 1.48 Before Mkt
HSY 1.14 Before Mkt
HZO 0.10 Before Mkt
IVC -0.22 Before Mkt
JBLU 0.07 Before Mkt
KKR 0.52 Before Mkt
LAD 0.95 Before Mkt
LAWS 0.10 Before Mkt
LLY 0.70 Before Mkt
LO 0.72 Before Mkt
LSTR 0.59 Before Mkt
LTM 0.68 Before Mkt
LYTS 0.02 Before Mkt
MDP 0.67 Before Mkt
MHO 0.14 Before Mkt
MJN 0.91 Before Mkt
MMM 1.80 Before Mkt
MO 0.57 Before Mkt
MTRN 0.24 Before Mkt
MYE 0.23 Before Mkt
NBL 0.75 Before Mkt
NDAQ 0.71 Before Mkt
NLSN 0.42 Before Mkt
NTCT 0.45 Before Mkt
NUE 0.37 Before Mkt
NURO N/A Before Mkt
NWE 1.08 Before Mkt
NYT 0.03 Before Mkt
ODFL 0.49 Before Mkt
OSTK 0.25 Before Mkt
PAG 0.71 Before Mkt
PATK 0.59 Before Mkt
PHM 0.20 Before Mkt
PJC 0.77 Before Mkt
PSTB 0.08 Before Mkt
PTEN 0.25 Before Mkt
RCL 0.28 Before Mkt
RTIX -0.01 Before Mkt
RYL 0.45 Before Mkt
SCG 1.15 Before Mkt
SFE 1.33 Before Mkt
SIAL 1.03 Before Mkt
SIRI 0.02 Before Mkt
SONS -0.01 Before Mkt
SWK 0.96 Before Mkt
TKR 0.81 Before Mkt
TWC 1.68 Before Mkt
TWI 0.36 Before Mkt
UAL -1.35 Before Mkt
UPS 1.08 Before Mkt
USG 0.20 Before Mkt
UTEK -0.23 Before Mkt
VDSI 0.04 Before Mkt
VIVO 0.27 Before Mkt
VLY 0.14 Before Mkt
WCC 1.07 Before Mkt
WM 0.44 Before Mkt
WMAR -0.40 Before Mkt
WTBA 0.25 Before Mkt
WYN 0.75 Before Mkt
YDKN 0.26 Before Mkt
ASPS 1.58 Unknown
CHMG 0.40 Unknown
FRME 0.40 Unknown
ICUI 0.34 Unknown
ORI 0.26 Unknown
SRCE 0.55 Unknown
STRT 1.08 Unknown
TROW 1.03 Unknown
WBCO 0.26 Unknown
YNDX 7.98 Unknown

Convertible Preferred Stocks Highlights

Symbol Name Last Change Volume Premium/
CWH-PD CommonWealth REIT, 6 1/2% Series D Cumul Convertible Preferred Shares 25.75 0.00 (0.00%) 507,146 0.92% 6.31%
EP-PC El Paso Energy Capital Trust I, 4 3/4% Trust Convertible Preferred Securities 52.14 0.01 (0.02%) 17,913 N/A 4.56%
AES-PC AES Trust III, $3.375 Trust Convertible Preferred Securities 50.70 0.06 (0.12%) 7,842 0.42% 6.66%
← California Muni Bonds - Is The Reward Worth The Risk? (Part 4) Microsoft, Intel, Cisco (MIC) - Can The Troika Grow Again? (Part 1) →

IBM - The Only Company That Should Buy Research in Motion

Posted on 2011-06-22 by Daniel Ho

RIMM BlackberryNot so long ago, Research In Motion (NASDAQ: RIMM) was a well respected company. At the time, even after iPhone debuted, I still encountered people who used the company as an example to illustrate why innovation was important. However, I was never a fan of the Blackberry, and I just didn't understand why anyone would want to personally buy a blackberry unless it was given to them by their companies. We even shorted the stock in 2008 around $100/share when the financial tsunami hit, and covered it a few months later at around $70/share. While that was a good trade, we obviously covered it too soon, as it is now trading < $30/share after it reported disappointing earnings on June 16.

Prior to the precipitous drop of RIM of 25% after its latest earnings reports, there were many bulls who touted that RIM was too cheap not to own. The reasons most cited were its market share in the enterprise market, its single digit P/E ratio, opportunity in international markets, etc. These days, many bulls are now silenced, but there are still no shortage of people who vow for RIM, again citing the same reasons as before, ignoring the faults of their previous analyses. However, while it was always a consideration, now more and more people think RIM could be a takeover target. The names thrown out as possible acquirers are Microsoft (NASDAQ: MSFT), Dell (NASDAQ: DELL), Hewlett Packard (NYSE: HPQ), HTC, Samsung, and even Google (NASDAQ: GOOG). This is actually the main reason that discourages us from shorting RIM again, but we don't think any of the aforementioned candidates makes any sense.

Let's go over the candidates and see why they should not/will not acquire RIM. First of all, RIMM, even after its steep decline in the last few years, is still a USD $15 billion company. For any company to acquire it, they will likely have to pay a pricey premium, at least > $25 billion before RIM's board will consider it, given how much RIM was trading before the latest drop in price and how low its P/E has become. This basically precludes many companies such as Dell and HTC, not to mention other aspiring smartphone makers even if they want to, because of their current financial statuses.

For Samsung, it is likely to become 'the' leader in Android based smartphone/tablets, and there is really no reason to distract itself to support another smartphone platform it does not seem to believe in. In HP's case, it just absorbed Palm Computing, and has its own plan for smartphone/tablet, and why would it go after RIM at this point? HP also has its own share of problems in its overall corporate focus, and only a market cap of $70 billion. It's not impossible, but it's very unlikely.

A VC suggested that Google buys off RIMM for its patents and spins off its hardware division. With Google pulled out of its own Nexus One phone, and gathering momentum with its Android platform while killing RIM at the same time, it's hard to imagine why Google buying RIM would be a good idea other than fortifying its patent portfolio to counter Apple. We also don't see how Google can integrate RIM with its vast corporate cultural difference. With Google now trading below $500/share, we are actually considering buying Google stocks, but we will drop the idea in a heartbeat if Google even entertains the idea of buying RIM.

When it comes to high price acquisition, everyone tries to stuff it to Microsoft because they have the money to do it. In this case, if Microsoft acquires RIM, it will instantly gain market share in the smartphone market, which is the main reason for the speculation. However, with just a fresh partnership with Nokia, any acquisition of a handset manufacturer will certainly jeopardize the partnership and makes the whole world questions, appropriately, the strategic focus of Microsoft. The acquisition will also hurt the prospect of Microsoft working with other handset manufacturers. After all, if the handset giant, Nokia, can be toyed with, why should other manufacturers trust Microsoft anymore? Although we think it's ok for Microsoft to acquire Skype even at a high premium, as a Microsoft shareholder, we certainly do not want to see Microsoft buying RIM.

The RIMM bulls got it right that RIM had a strong enterprise focus and great relationships with mobile carriers. In our opinion, the only company that can integrate RIM into its portfolio, and effectively leverage these advantages to enhance their own business will be IBM (NYSE: IBM). With a market cap of ~$200 billion, there is no problem for IBM to pay for RIM, either in stocks or a combination of cash and stocks. Being both a software and hardware company, IBM's culture should be much more compatible with RIM than any other potential acquirers. More importantly, IBM can acquire RIM for its strong bonds with enterprises, and forget about the continual competition with Apple and Google in the consumer market, a losing proposition so far. The acquisition will streamline and refocus RIM in the business world, and solidify IBM's entries in IT departments of almost all large corporations. Furthermore, by integrating RIM and providing a viable mobile platform for enterprises on both the client and server sides, IBM can potentially reclaim its leadership in enterprise communication software over Microsoft's Exchange.

Frankly, even though we see a good fit for IBM and RIM together, we don't think RIM is ready for a takeover until its stock declines further through market share erosion and earnings losses. One strategy of investing on this theory will be to write puts on RIMM, so investors can secure a lower price point of entry on its stocks. At some point of time, RIMM as an acquisition target for IBM will become too apparent to ignore, and investors will be rewarded when time comes for that.

This article originally appears on

← California Muni Bonds - Is The Reward Worth The Risk? (Part 4) Microsoft, Intel, Cisco (MIC) - Can The Troika Grow Again? (Part 1) →

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