Market Summary

 

Earning Reports

Total Companies: (313) Stock Center View

Symbol Price EPS
Est.
Reporting
Time
CTRX 0.56 06:00 am ET
THRM 0.42 06:00 am ET
AMT 0.57 07:00 am ET
CARB -0.01 07:00 am ET
DST 1.33 07:00 am ET
INCY 0.00 07:00 am ET
IVZ 0.62 07:30 am ET
PAR N/A 07:30 am ET
RFP 0.25 07:30 am ET
HAR 1.11 08:00 am ET
BEAT 0.02 4:00 pm ET
CYTK -0.24 4:00 pm ET
EPAY 0.33 4:00 pm ET
ADNC -0.39 After Mkt
AEGR -0.14 After Mkt
AFFX 0.04 After Mkt
AGII 0.86 After Mkt
AHS 0.17 After Mkt
AIV 0.51 After Mkt
ALJ 0.60 After Mkt
ANH 0.09 After Mkt
ANTH -0.39 After Mkt
ATEC -0.01 After Mkt
ATEN -0.12 After Mkt
ATR 0.73 After Mkt
ATRC -0.17 After Mkt
AVHI 0.07 After Mkt
AVNW -0.08 After Mkt
BAGL 0.22 After Mkt
BCOV -0.08 After Mkt
BFIN 0.15 After Mkt
BODY -5.80 After Mkt
BYD 0.02 After Mkt
BYI 1.17 After Mkt
CCI 1.01 After Mkt
CDR 0.02 After Mkt
CHE 1.51 After Mkt
COHU 0.26 After Mkt
COLM 0.87 After Mkt
CPSI 0.84 After Mkt
CPT 1.07 After Mkt
CQP -0.42 After Mkt
CSC 1.01 After Mkt
CSLT -0.21 After Mkt
CTRL 0.14 After Mkt
CUBE 0.27 After Mkt
DCT 0.12 After Mkt
DGI -0.01 After Mkt
DGII 0.03 After Mkt
DHT -0.02 After Mkt
EGN 0.48 After Mkt
EHTH 0.06 After Mkt
ELGX -0.13 After Mkt
ELX 0.08 After Mkt
EMN 1.80 After Mkt
ERIE 0.93 After Mkt
ESIO -0.19 After Mkt
ESS 1.91 After Mkt
EXPE 1.74 After Mkt
FFBC 0.27 After Mkt
FLDM -0.47 After Mkt
FLR 1.10 After Mkt
FLT 1.34 After Mkt
FRT 1.23 After Mkt
GB 0.58 After Mkt
GCAP -0.01 After Mkt
GDOT 0.28 After Mkt
GLPW 0.16 After Mkt
GMED 0.21 After Mkt
GNMK -0.32 After Mkt
GPRO 0.08 After Mkt
GRPN 0.01 After Mkt
HEOP 0.09 After Mkt
HME 1.14 After Mkt
IMMR 0.07 After Mkt
IMPV -0.29 After Mkt
INT 0.72 After Mkt
IRIX 0.02 After Mkt
ISBC 0.10 After Mkt
KEG -0.08 After Mkt
KOG 0.20 After Mkt
LNKD 0.47 After Mkt
LRE 0.28 After Mkt
LYV 0.38 After Mkt
MBFI 0.41 After Mkt
MCHP 0.67 After Mkt
MELI 0.65 After Mkt
MERC 0.17 After Mkt
MHK 2.42 After Mkt
MOH 0.42 After Mkt
MOVE 0.01 After Mkt
MRLN 0.36 After Mkt
MTZ 0.55 After Mkt
MXL 0.03 After Mkt
MYL 1.14 After Mkt
NATI 0.26 After Mkt
NEM 0.16 After Mkt
NR 0.19 After Mkt
NSR 1.04 After Mkt
NUVA 0.25 After Mkt
OGXI -0.37 After Mkt
OIS 0.98 After Mkt
OMCL 0.31 After Mkt
ONNN 0.23 After Mkt
OPLK 0.26 After Mkt
OUTR 1.14 After Mkt
PKI 0.57 After Mkt
PKY 0.36 After Mkt
POWI 0.70 After Mkt
PPS 0.45 After Mkt
PRAA 1.11 After Mkt
PSA 2.06 After Mkt
QNST 0.02 After Mkt
RAIL 0.50 After Mkt
RATE 0.16 After Mkt
RM 0.48 After Mkt
RSG 0.53 After Mkt
SAM 2.32 After Mkt
SBUX 0.74 After Mkt
SCSC 0.61 After Mkt
SEB N/A After Mkt
SEM 0.20 After Mkt
SGEN -0.24 After Mkt
SGMS -0.35 After Mkt
SIMG 0.07 After Mkt
SPF 0.15 After Mkt
SQI 0.07 After Mkt
SREV -0.13 After Mkt
STAA 0.02 After Mkt
STAG 0.37 After Mkt
SYNC -0.06 After Mkt
TBBK -0.09 After Mkt
TCBK 0.35 After Mkt
TCO 0.90 After Mkt
TEP 0.28 After Mkt
THRX -0.14 After Mkt
TLLP 0.62 After Mkt
TNAV -0.27 After Mkt
TORM N/A After Mkt
TPX 0.89 After Mkt
TRMB 0.38 After Mkt
TSO 2.16 After Mkt
TSRA 0.80 After Mkt
TUES -0.14 After Mkt
UPIP -0.07 After Mkt
VCRA -0.19 After Mkt
VRTU 0.34 After Mkt
WSFS 1.40 After Mkt
WU 0.38 After Mkt
YRCW -0.05 After Mkt
ZEN -0.18 After Mkt
ABC 1.05 Before Mkt
ABMD 0.02 Before Mkt
ACIW 0.13 Before Mkt
ACOR 0.05 Before Mkt
ALLE 0.65 Before Mkt
AMAG -0.08 Before Mkt
ANR -0.70 Before Mkt
APD 1.61 Before Mkt
APO 0.38 Before Mkt
ATK 2.95 Before Mkt
AUDC 0.05 Before Mkt
AVP 0.17 Before Mkt
BANC 0.25 Before Mkt
BCO 0.61 Before Mkt
BG 1.93 Before Mkt
BGCP 0.16 Before Mkt
BLL 1.05 Before Mkt
BWA 0.78 Before Mkt
BWEN 0.08 Before Mkt
CAH 0.96 Before Mkt
CBM 0.26 Before Mkt
CETV N/A Before Mkt
CEVA 0.10 Before Mkt
CI 1.83 Before Mkt
CME 0.83 Before Mkt
CNDO N/A Before Mkt
CNSL 0.23 Before Mkt
COB 0.15 Before Mkt
COR 0.53 Before Mkt
COWN 0.06 Before Mkt
CRCM -0.43 Before Mkt
CRNT -0.03 Before Mkt
CVI 0.74 Before Mkt
CVRR 0.66 Before Mkt
DBD 0.49 Before Mkt
DFT 0.61 Before Mkt
DHX 0.11 Before Mkt
DRC 0.63 Before Mkt
DRQ 1.30 Before Mkt
EMES 0.90 Before Mkt
EPD 0.37 Before Mkt
EPZM -0.55 Before Mkt
ETRM -0.10 Before Mkt
EXLS 0.42 Before Mkt
FCH 0.19 Before Mkt
FCN 0.40 Before Mkt
FIG 0.16 Before Mkt
GBX 1.03 Before Mkt
GLOP 0.38 Before Mkt
GNC 0.74 Before Mkt
GOV 0.62 Before Mkt
GPX 0.30 Before Mkt
GTI -0.06 Before Mkt
GTLS 0.86 Before Mkt
HBIO 0.06 Before Mkt
HEES 0.46 Before Mkt
HGG 0.00 Before Mkt
HHS 0.13 Before Mkt
HST 0.31 Before Mkt
HTWR -0.65 Before Mkt
I 0.48 Before Mkt
IDA 1.57 Before Mkt
IDCC 0.19 Before Mkt
INGR 1.59 Before Mkt
IQNT 0.21 Before Mkt
IRDM 0.14 Before Mkt
IRM 0.37 Before Mkt
IRT 0.15 Before Mkt
ITC 0.47 Before Mkt
JCI 1.01 Before Mkt
JRN 0.19 Before Mkt
K 0.92 Before Mkt
KCG N/A Before Mkt
KEM 0.03 Before Mkt
KMT 0.55 Before Mkt
LAD 1.31 Before Mkt
LANC 0.83 Before Mkt
LECO 0.90 Before Mkt
LIOX 0.05 Before Mkt
LIQD -0.09 Before Mkt
LKQ 0.32 Before Mkt
LOAN N/A Before Mkt
LOJN N/A Before Mkt
LPLA 0.50 Before Mkt
LRN -0.20 Before Mkt
MA 0.78 Before Mkt
MD 0.85 Before Mkt
MDC 0.50 Before Mkt
MDXG 0.02 Before Mkt
MGM 0.06 Before Mkt
MMYT -0.04 Before Mkt
MO 0.68 Before Mkt
MOD 0.13 Before Mkt
MOS N/A Before Mkt
MPC 2.29 Before Mkt
MPLX 0.39 Before Mkt
MPW 0.27 Before Mkt
MSCI 0.49 Before Mkt
NAO 0.28 Before Mkt
NEO -0.01 Before Mkt
NI 0.16 Before Mkt
NILE 0.14 Before Mkt
NKA -0.21 Before Mkt
NOV 1.53 Before Mkt
NPO 0.42 Before Mkt
NYT 0.00 Before Mkt
OAK 0.62 Before Mkt
OCN 0.59 Before Mkt
ODFL 0.87 Before Mkt
OIIM -0.12 Before Mkt
ORN 0.09 Before Mkt
OXF -0.28 Before Mkt
PATK 0.67 Before Mkt
PBF 1.04 Before Mkt
PBFX 0.33 Before Mkt
PBI 0.46 Before Mkt
PCRX 0.10 Before Mkt
PEG 0.75 Before Mkt
PSTB 0.09 Before Mkt
PTIE N/A Before Mkt
Q 0.64 Before Mkt
RAS 0.16 Before Mkt
RDEN -0.53 Before Mkt
RDN 0.33 Before Mkt
RNO -0.21 Before Mkt
ROLL 0.69 Before Mkt
RTIX 0.02 Before Mkt
SCG 0.98 Before Mkt
SHOO 0.61 Before Mkt
SMA 0.15 Before Mkt
SMP 0.81 Before Mkt
SNAK 0.12 Before Mkt
STRA 0.18 Before Mkt
STRZA 0.51 Before Mkt
SUI 0.89 Before Mkt
TASR 0.09 Before Mkt
TRI 0.45 Before Mkt
TWC 1.91 Before Mkt
UAN 0.22 Before Mkt
UPL 0.53 Before Mkt
USAC 0.13 Before Mkt
VNTV 0.49 Before Mkt
WLT -1.63 Before Mkt
WMK N/A Before Mkt
WST 0.43 Before Mkt
WUBA -0.01 Before Mkt
WWE -0.17 Before Mkt
XEL 0.77 Before Mkt
AHP 0.10 Unknown
AKBA -0.45 Unknown
COCO 0.11 Unknown
CRR 0.75 Unknown
DSX -0.07 Unknown
EBIO -0.44 Unknown
EPAX N/A Unknown
FUBC 0.10 Unknown
GLYC 0.21 Unknown
HBOS 0.34 Unknown
MEP 0.09 Unknown
STML -0.58 Unknown
TA 0.45 Unknown
WG 0.23 Unknown

Today's Earnings Stocks Highlights

Symbol Name Last Change Volume EPS
Est.
Reporting
Time
Market
Cap
MA MasterCard Incorporated 81.40 5.41 (7.12%) 10.12M 0.78 Before Mkt 94.26B
MO Altria Group, Inc. 47.52 -0.05 (-0.11%) 2.43M 0.68 Before Mkt 94.09B
SBUX Starbucks Corporation 76.97 0.43 (0.56%) 1.43M 0.74 After Mkt 57.82B
← 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 benzinga.com

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

blog comments powered by Disqus
Feedback