RIM shares fall again
Posted Jan 24, 2012 04:21:35 PM.
This article is more than 5 years old.
The market fallout continues for Research in Motion shares in the wake of the company’s executive shake up on Sunday night. The stock closed down about three percent on the TSX, adding to yesterday’s loss of more than nine percent.
Assistant Professor of Marketing at York University, Alan C. Middleton, told 570’s Gary Doyle Show on Tuesday, he thinks markets are reacting negatively to the appointment of Thorsten Heins as the new CEO of the company. “He’s been part of the current strategy for the last four or five years,” Middleton explains. “There was no sense that they’d actually been preparing for this (or) any clarity of a new direction to go in, which I find a little worrying.”
Middleton says RIM has been caught up with a lack of innovation in the past few years as it tries to compete with Apple and Android.
He believes RIM should be building on one of its biggest strengths, the security of its network. “We’re in an era where identity theft, where online theft from business, is a huge and growing issue,” he explains. “So, the security of stuff going over the web…is a high priority.”
RIM was once Canada’s most valuable company, worth more than $70-billion dollars, but now has a stock market value of around $8-billion.
tiffany.hendsbee@570news.rogers.com
