It hasn’t been easy for RIM these last couple of weeks. There was that nasty outage, more CEO shenanigans, and only passing notice of the company’s announcement of the BBX platform. In the wake of all this, RIMs stock price has dropped again, which (sadly) isn’t usually news these days, but this time the company has crossed an important threshold. RIM is now worth less than the net value of its property, patents and other assets.
This number is called “book value”, and can be a useful indicator of the health of a company. RIM’s share price is now $18.91, but if you work out the value of RIM’s assets, it’s worth $18.92 per share. It could be said at this point, that RIM is worth more dead than alive. If a private firm were looking to buy RIM and possibly sell it off, the book value would be an important part of the calculation.
Unless the folks in Waterloo get back on their game, RIM is going to have trouble pulling out of this tailspin. The stock price has dropped nearly 10% in the last quarter, and 67% in the past year. Do you think RIM still has a shot?