Re: Wall Street Journal
Just today... Walll Street Journal article...
http://blogs.wsj.com/marketbeat/2011/04/21/gmp-downgrades-rimm-playbook-not-ready/?mod=yahoo_hs
Ah, Michael Urlocker, the GMP analyst who follows Research in Motion, is back at it again.
After pounding the table for RIMM at the end of last month, he’s thrown in the towel (again), downgrading the BlackBerry maker to hold from buy.
The stock is still really cheap — in fact cheaper than when he said RIMM looked tres cheap on March 30 based on valuation. But after mulling RIMM’s valuation for an additional three weeks, Urlocker now sees a possible “value trap” wherein a stock looks cheap but isn’t’ because its prospects are diminishing.
Urlocker says PlayBook, RIMM’s hyped tablet, doesn’t seem ready for the market. He describes his own experience with the device as buggy. “Our early experience with the PlayBook suggests the product is not ready; several minor bugs, large software upgrades, absence of useful applications, inconsistent and buggy bridge software suggest the product was rushed to market with poor quality control.”
GMP, like most other Canadian securities firms, has usually been a fierce RIMM backer. Heck, GMP brags about its relationship with RIMM on its own website. But Urlocker has tried to demonstrate an independent streak. He downgraded RIMM to hold last August and reduce back in December before getting back on the buy bandwagon in January.
He is practically wistful about the downgrade. “We think RIMM is executing poorly. We had expected better for this flagship product.”
Verizon kicks ‘em when they’re down, saying it is still “undecided” about carrying the PlayBook.
RIMM shares are off 1.5% to 53.66. Apple up 2.8% at 352.02. Motorola Mobility up more than 3%.
(Note: The writer of this post is a proud BlackBerry owner.)