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Who Could Buy RIM?

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    JMP Securities managing director Alex Gauna on the future of Research in Motion.

  • Duration 4:05
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More with Chris just a few -- that's.

We'll hang -- up on Research in Motion the Blackberry maker posting its first quarterly loss in seven years the stock is rising after new CEO.

-- Hynes said he's.

Won't reviewing strategic options any didn't roll out a potential sale of that company can Research in Motion turn the story around four.

Are they first.

As managing director -- JMP securities you think somebody comes at a buys them.

I really don't think so I know the market is going to be tempted to speculate around that front particularly with.

Sixty million -- short out there in the new tone set by management I will say it's a refreshing and encouraging tone but at this juncture we don't see a natural fit.

For Research in Motion.

What is a thing of the journal our partners over the journal back in December us speculated.

That and reported frankly that Microsoft and Nokia we're talking about a joint bid for the company.

She had that potential out there Amazon Reuters have reported that Amazon might be interested in December as well Hewlett-Packard Meg Whitman.

As -- reported that she not wanna make a play for this company all those reports are wrong.

I have no doubt that these companies talk to each other and they explore certain strategic options that are available to them.

I do think that Microsoft and Nokia have their plates full look present the key goal for Microsoft right now is to execute on windows eight.

Verses income -- the story more with the move on Blackberry ten.

I think in the case of Amazon it's a consumer model it doesn't make a lot of sense for them to go after the now more enterprise focused Research in Motion.

Tell me ask you this there's other things that the company can do don't wanna get your take on this and you got a market underperform Sarah -- stock right now fair enough.

What is sold some other software patents.

What if they sold off like a piece of the business at the network for instance what about that kind of strategy.

Cut and stay together stay the -- Canada but -- down a little bit what about that.

So I think you're right on up -- there still is a good deal of intrinsic value left and Research in Motion.

And I think there is some danger in the outside short interest in the fact that the company is taking some bold moves at present you think about.

That there are still cash flow positive they've still got a very healthy balance sheet and yet they're making.

Such drastic moves at present an opening themselves up to some of these new strategic alternative so.

Never say never in terms of creating value of Research in Motion but I don't see any near term catalyst -- the stock.

And yet I'm not really privy to what they might do in the near term.

But I think that from the most logical investment case that take out that's not gonna happen we'll have to see if they can monetize some of these other assets.

Well -- -- had a lot of management changes and you've got the CL the CTO leaving I mean your to your chief technical officer is living I mean for a technology company.

Little frightening you've also got beat the competition this -- and -- mean you've got a new report that says that the -- sales are gonna outpacing the the iPhone.

Definitely the Blackberry by 2016.

So are we robbery -- the wrong tree here wrong stock basically.

So Sheryl I think you just touched on it it's not so much what Blackberry is doing wrong but what their competition is doing right.

Apple and android are just crushing it right now in terms of the devices.

The ecosystem the momentum.

And I think that those are the real place for 2012.

That's why we like some of the component vendors into that space a Qualcomm for example.

And I think even a skyworks it's one of the leaders in -- are -- those are the ways we want to play.

The explosion in Smartphone and tablet demand and if you want an enterprise spend -- things.

We put an Intel out there which is paying a really attractive dividend right now -- as much maligned.

For the apple competition in the case of Intel I think they've got a bedrock enterprise strategy for Research in Motion.

They still need to prove that they can turn it around and like you said they're going to be doing it with the management reshuffling and without a chief technical officer right now.

Alex gonna be just reiterated twelve dollars is a price target on -- JMP securities managing director thank you.

Thank you.

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