RIM woes just a “speed bump”
Posted Sep 6, 2011 02:30:09 PM.
This article is more than 5 years old.
A Waterloo-based investment firm is maintaining its positive outlook on Research in Motion.
Stacey Muirhead Capital Management is not just holding its current shares in RIM, it’s buying more.
Founding partner Jeffrey Stacey says he’s not at all surprised to see a shareholder like Jaguar Financial Corporation advocate for change during turbulent times. He just sees these times as less turbulent than most.
“I see, after more than a decade of outstanding growth and revenue and earnings and cash flow, RIM has hit a bit of a speed bump in the short term,” Stacey analyzes. “But all great companies go through that, including Apple.”
Stacey is encouraging investors to allow RIM the time it needs to execute the plans discussed during its annual general meeting, and that includes an internal analysis of the company’s governance structure.
But he’s hesitant to lobby for change.
“Unconventional isn’t necessarily bad governance,” Stacey points out. “The governance structure at RIM has worked for investors for a long, long time. RIM did agree at its annual meeting to study this process again and I think shareholders should give them time to let it play out.”
While Stacey understands how investors can get caught up in what he describes as “Macro Distraction Syndrome,” he stresses the importance of keeping RIM’s successes in sight.
“One of the things I don’t think RIM gets enough credit for is its excellent growth outside of North America, particularly (outside) the U.S.,” Stacey insists. “They’ve just done a phenomenal job, globally, in building out the smart phone market.”
To that end, Stacey says the drop in RIM’s share prices is more of an opportunity than a problem.
RIM reached a price per share of $30 U.S. last week for the first time in more than two months. The company’s shares have lost almost half their value since the start of the year.
