RIM Shares Jump

 

http://www.financialpost.com/news/technology/shares+jump/3535449/story.html

Summary: The article explains that the shares of RIM ltd. (Research in Motion) shot up on Friday, after they had reported their earnings of the second quarter of their fiscal period (there are 4 parts to a fiscal period), and topped the expectations of Wall Street. The shares of RIM increased 4.49% in Toronto, and increased 4.5% in New York. The report presented that their revenue raised by 31% to US $4.62- billion from US $4.42- billion that was earned from the same period last year. RIM also stated that they had shipped 12.1 million Blackberries in the quarter, which added 4.5 million new users of their blackberries. Even though, RIM had had a tough summer this year, with their many competitors like Apple, Android, and other smart phones, their shares are finally rising, thanks to the launch of the new model Torch. RIM expects to have revenue ranging between $5.3-billion and $5.55 billion in the next quarter.

Connections:

RIM is a publicly traded corporation, which is mentioned in chapter 1, and the shares of this company can be easily traded or transferred in the public stock exchange. For example, the Toronto Stock Exchange, and the New York Stock Exchange. The shares of the corporation will rise when people see the excellent net earnings on their income statements, and the net earnings are achieved by how well they manage their operating activities. Also, the financial statement provides information that could help shareholders’ (external users) decide on their investing activities. Also, shareholders may now get a higher dividend from the corporation.

Reflection:

In my opinion, RIM’s vision of their revenue for their next quarter is fairly reasonable. They had pulled themselves up from the slide in the tough summer time, and is doing really well right now even with the popular iPhone 4 and Android phones as their competitions. Also, analysts are encouraged by their expectations for the next quarter as well. There were some problems with the Middle East, and Asia about the company’s security technology, and these countries had threatened about banning the use of their blackberries. However, they no longer are planning to ban these devices, and RIM reported they are confident to come to a resolution, especially in India, which is one of the largest mobile phone markets in the world. As they clear up the situation with the Middle East, and Asia, I believe that RIM will certainly have more new users, and reaching their expectations for the next quarter.RIM Shares Jump