I see that RIMM has gone up a few percent points the last week. Results are going down the toilet. Q2 shipments of Blackberry were 7.4m against 7.8m. Q2 gross margins 26.0% vs 38.7% in Q2 2011.
I was wondering why Prem Watsa and Greenblatt were loading up on this “obviously” dud stock. It’s purely guesswork on my part, but it’s possible that these guys see a restructuring where the company splits into two: the hardware side, and possibly a messaging side, or something like that. A Dr Jekyll and Mr Hyde. Funny thing is, maybe these guys can end up winning whether the hardware side succeeds or fails.
I guess that’s why those guys are considered investing geniuses, and I’m a mere monkey climbing a tree marvelling at how much progress I’ve made to reaching the moon.
I confess that I don’t really know the ins-and-outs of what’s going on, or whether my hypothesis is even close to being correct. But if I’m even remotely close to catching on to what they’re seeing, then I feel like a drooling idiot for my prior poo-pooing of RIMM. Seems like something I should study more indepth.