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Prospects dim for RIM; Stocks rally

Wednesday, May 30, 2012 - 01:56

May 29 - Summary of business headlines: Research in Motion hires bankers to review its struggling business; Wall Street gains one percent as Europe worries temporarily fade. Conway G. Gittens reports.

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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL Research in Motion says it has hired JP Morgan and RBC Capital Markets to review its business, heightening speculation the company may put itself, or parts of its business, up for sale. The question for Rick Summer of Morningstar is, is there anything left worth buying? SOUNDBITE: RICK SUMMER, SENIOR EQUITY ANALYST, MORNINGSTAR (ENGLISH) SAYING: "You've got a declining user base, a very clue-gy operating system there at the same time. I am not sure what you buy. You certainly don't buy an installed base. I think that BlackBerry users are still pretty excited to get it and replace it with something else along those same lines. The handset business frightens us." The BlackBerry maker has fallen on hard times as the Apple iPhone and Google Android smartphones take away big chunks of its marketshare. The company is hoping to staunch the bleeding with next generation BlackBerries due later in the year, but analysts fear that may be too late with competitors debuting upgrades to more popular models. Shares closed New York trade above $11 a share. They were at $70 just over a year ago. Wall Street began a holiday-shortened trading week with an upswing due to scaled-back fears of a Greek departure from the euro zone. The Dow, the S&P 500, and the Nasdaq each gained one percent a piece. Home prices rose in March, for the second month in a row, according to seasonally adjusted figures from S&P/Case-Shiller. But prices slipped to pre-crisis lows during the first quarter. And consumer confidence as measured by the Conference Board dropped to a four-month low with growing concerns about jobs. European stocks closed at a one-week high on speculation the European Central Bank will provide additional help to the banking sector. Conway Gittens, Reuters

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Prospects dim for RIM; Stocks rally

Wednesday, May 30, 2012 - 01:56