Research in Motion CEO Thorstean Heins: Company not in a "Death Spiral"
Research in Motion (NASDAQ: RIMM) CEO Thorstein Heins did an interview with Canada's CBC Radio in which he denied that his company is in a "death spiral." Obviously, many observers would disagree. Research in Motion shares have fallen more than 74% in the last year and nearly 89% over the last 5 years. If the company isn't in a "death spiral," the stock sure is. Consider that in June 2008, RIMM shares traded above $140.00. Today, the stock is trading at $7.36.
Heins also said that "there's nothing wrong with the company as it exists right now." This is a difficult statement to defend, and it is exactly this kind of denial by management that has exacerbated Research in Motion's problems. Heins added, “I'm not talking about the company as I, kind of, took it over six months ago. I'm talking about the company (in the) state it's in right now.”
Shares are once again trending lower on Tuesday, and at last check the stock had lost another 1.60%. Last week, Research in Motion reported yet another terrible quarter, weak guidance, and in a major shocker, that it was delaying the release of Blackberry 10, which will not be ready in time for the holidays. The company also announced that it would continue with its lay-off plans as it cuts 5,000 jobs in an effort to shed costs.
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