RIM shares dip below book value for the first time since '02.
It's been a rough year for Research In Motion and it doesn't look like it's going to get easier anytime soon. For the first time in nine years, the company's stock this week fell below book value.
BusinessWeek reports that, according to data compiled at the end of last year, RIM's per-share book value stands at $18.92. Yesterday, shares in New York dropped to $18.66, representing the first time since 2002 that the company's share price has been below book value. At roughly 9:30 a.m. on Wednesday, November 2, RIM stock stood at $19.67. By 10:41 this morning, this number had fallen to $18.34, and if analysts are to be believed, it's only going to decrease. BW cites Veritas Investment Research Corp analyst Neeraj Monga as saying RIM shares could drop below $10 within two months.
RIM made headlines last month when it suffered a service outage that affected users around the globe. The company managed to restore services after three days of problems but share prices have suffered since. Once a bright and shining star in the smartphone industry, RIM has struggled to keep up with the likes of Google and Apple. However, the company is optimistic, expecting strong sales of its Bold, Torch and Curve handsets for the next quarter and planning an update for its PlayBook tablet in February. The update, originally scheduled for release this past summer, will bring native email, calendar, and memo features, along with other PIM functions that have been missing since the launch in April.