Breaking News

IBM No Longer Sees Delivering 'at Least $20 Operating EPS' in 2015
Tweet TWEET

RIM Tumbles Below $10 a Share, Lowest Since December 2003

June 4 (Bloomberg) -- Research In Motion Ltd. fell to the lowest level since 2003, marking four days of declines since the struggling BlackBerry maker forecast an operating loss and said it had hired banks to explore strategic options. Bloomberg's Jon Erlichman reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Research In Motion Ltd. (RIM) fell to the lowest level since 2003, marking four days of declines since the struggling BlackBerry maker forecast an operating loss and said it had hired banks to explore strategic options.

RIM declined 5.8 percent to $9.66 a share at the close in New York, for the lowest price since Dec. 22, 2003. The stock has slumped 93 percent from its mid-2008 high of $147.55.

RIM said May 29 that it may report a quarterly loss for the three months that ended June 2, stung by a “high” rate of customer defections in the U.S. The operating loss would be the first since 2004 for the Waterloo, Ontario-based company, according to data compiled by Bloomberg.

“The stock had hung in better than I expected after the pre-announcement and maybe we’re now seeing people that had not sold amid the early pressure, doing so,” said Matt Thornton, an analyst at Avian Securities LLC in Boston. He has a neutral rating on the stock.

Faced with pressure from shareholders to improve performance, RIM last week said it had hired JPMorgan Chase & Co. (JPM) and RBC Capital Markets to help the company evaluate its options. Its share of the global smartphone market fell by more than half last quarter to 6.4 percent, according to research firm IDC, as its aging lineup of BlackBerry phones failed to keep pace with Apple Inc. (AAPL)’s iPhone and newer products based on Google Inc. (GOOG)’s Android operating platform.

Store checks indicate that sales of BlackBerry devices in the U.S. probably fell in May from a month earlier, Jim Faucette, a Pacific Crest Securities Inc. analyst, said today in a client note.

“It is going to get worse for Research In Motion,” said Faucette, who rates the stock equivalent of a sell.

To contact the reporter on this story: Hugo Miller in Toronto at hugomiller@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.