Research in Motion is broke(n), say brokerages

Reporters aren’t the only ones forecasting doom and gloom for Research in Motion—grave prophesies from several financial players drove down the company’s shares on Monday. The stock fell 5.2 per cent on the Nasdaq to $17.25 U.S., reflecting the unease of analysts from JPMorgan, RBC Capital Markets, Canaccord Genuity, JMP Securities and Credit Suisse. A few merciful players, including Goldman Sachs, did raise their ratings last week, recognizing that RIM’s beaten-and-bloody share value is sufficient proof of their woes. But it seems like the company could easily fall short of its third-quarter expectations—analysts estimate a profit of $1.21 per share on $5.32 billion in sales (which is barely within estimates). We’ll know on December 15 when the company reports the real figures. Read the entire story [Toronto Star] »