Will there be a day when anything but bad news comes out of 295 Phillip Street in Waterloo, Ontario, the headquarters of beleaguered BlackBerry maker Research in Motion? At least one expert with a history of nailing trends in outsize Canadian techs thinks so.
On Thursday, Ross Healy, Chairman & CEO of Toronto-based research firm Strategic Analysis, was on Market Call with host Michael Hainsworth to talk North American large cap stocks.
Healy, who is perhaps best known for predicting the demise of Nortel Networks in the late-nineties, says the same fate does not await RIM. He says RIM is currently in the middle of what Douglas Adams would call “The Long Dark Tea-Time of the Soul”, referring to the 1988 fantasy detective novel. Healy says the time between RIM’s old products and new BlackBerry 10 operating system may feel like an eternity, but the company is still extremely attractive considering a growing subscriber base in Asia and Africa is easing lost market share in North America.
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“This is the time when people love to pile on, says Healy. But, he added: “I have a feeling that everyone who is piling on now is going to be thrown for a big penalty.” The Strategic Analysis’ boss says he thinks RIM will have a big recovery. “Whether it’s a permanent recovery or not I don’t know,” he said, but says the stock is very attractive at current levels, where he is buying.
On June 28th, Research in Motion reported a Q1 in which it lost $518 million, or $.99 cents a share, on revenue of just $2.8 billion, which was a 33% drop from $4.2 billion in the same quarter a year ago. What’s more, the company delayed its much anticipated new operating system, BlackBerry 10, until next year.
Tomorrow morning in Waterloo, RIM will host its Annual General Meeting. Shares of the company on the TSX closed today down 5.1% to $7.80.