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Does This Mutual Fund Manager Know Something Analysts Don’t?

With all the doom and gloom coming from some financial analysts Gokulesh pointed out an interesting change in the last quarter. The Street is reporting that "The Yacktman Fund’s Donald Yacktman, The the mutual-fund manager with the best record in the past 10 years" has taken out a large stake in RIM during the second quarter. The Yachtman Fund has purchased 1.5 million shares of RIMM stock worth $43.3 million during the second quarter… They have also purchased quite a few shares of other companies that are being hammered on the stock market including Cisco, HP, Microsoft and News Corp.

It seems like not everybody is buying the "RIM is in a downward spiral" analyst predictions and betting big on RIM’s continued growth!

20 total comments on this postSubmit your comment!
  1. Makes sense. There are no risk-free moves in the world, but, if one understands RIM’s current state and understands the future plans, I feel it is a very good bet to buy RIM now.

    Based on the RIM plan, with QNX phones next year and integration of QNX into other markets (cars), combined with the Android development blockade and patent lawsuits, combined with iOS’s inherent limitations…. I feel QNX RIM is in the best shape of all the companies moving forward

    iOS is not future proof… Apple has all their eggs in that basket and there is no indication they are planning a switch anytime soon.

    QNX OS destroys iOS.

    Its a safe bet that Android development will slow to a grinding hault given the current state of legal actions.

    Windows Phone just seems to not be able to catch on….

    The next 12 months are going to be fun to watch….

    • What’s Windoze Phone? Nokia will fall even harder because of it. They gave up Symbian and jumped into Microsoft’s bed. Now they’re at their mercy. What a sad, sad place to be.

      Android will have a rough time keeping customers long term. People are trying it out, but there are so many legal and incompatibility issues.

      iOS is not scalable like QNX is. If RIM readies their QNX phones in 6 months, we’ll see some real action in the media and marketplace. QNX’s wow factor will be HUGE!

      Some really good points you raise, BBAddict!

      • I hate to tip off Apple, but, I feel that iOS is about 2 years from being where OS 7 is right now.

        If you project QNX out two years from now.. sitting on quad cores… or heck even higher….. iOS will be useless.

        Apple needs a new OS ready to go in about 2-3 years.

        • I think Apple needs a new OS in 1 year. QNX will be out running on BB superphones in 8 months. It will take Apple a while to get their OS to efficiently handle multicore chipsets like QNX can today. They will need a new OS.

          QNX was such a great buy for RIM! Awesome!

          • I think Apple needs new hardware. Oh wait, they’ve only ever had one piece of hardware. For a society that loves their rights, option to choose, I make my own decisions…way to let Apple decide for you. Rather than give us an iPhone with a keyboard and one without, nope Apple customers don’t get that option. That is why I won’t buy an iphone. I laugh when I read innovative and iphone in the same sentance…one design recycled 5 generations. No flip phone option, keyboard option, candy bar, just the full touch.

  2. Actually I think they’re betting on RIM being an acquisition target

    • crazy talk.

      RIM’s perceived value is still potentially in the 60-70 dollar range.

      Until that drops into the 30 range… no acquisition

      RIM is too expensive right now….

      • Isn’t RIM’s stock down to something like $24 now?

        • There is a difference between perceived future value and current value.

          If RIM’s plans go the way they want they perceive their value around 60-70

          I concur with that assessment.

          There is no way stockholder would except a bid based on a stock value of 25 bucks. When there is a takeover, there is always a premium.

          The premium for RIM right now is high.

          Granted, yes, its on the edge. The next 6-10 months is huge.

          If the QNX rollout falls behind… RIM’s perceived value will drop and a takeover is more possible

          RIM is a wait and see company now.

          • Wait and see them fly! 😉 I think a takeover is always a possibility, but Mike & Jim are committed to this company. I don’t think Mike, especially, would want to work for someone else. He wants to do it his way, and he’s earned that right. Look where RIM has been and where it is today. It is still one of the world’s most respected companies, even if they have been taking a beating lately.

            I hate to say that, but most shareholders are very finicky and very, very greedy. They want immediate results with no delays. They always want higher than expected earnings. They want the impossible.

            Some shareholders were even asking for the removal of the Co-CEOs. Hey, bud, you only own 100 shares so sitdown and shutup! I think the Co-CEOs have way, way more to lose than you do! No one goes through life without making mistakes. I think Mike & Jim have learned a lot from this experience, and everything will be done much better the next time. Who else can do a better job at running this very complex company? Take a valium and chill. It will all be better in the morning.

            Because of these constant and outrageous expectations, it’s no wonder many companies were cooking their books! If you meet projected earnings your stock takes a hit. If you forecast lower than expected earnings, the stock goes into free fall. It doesn’t matter if you had record earnings the previous quarter — they don’t care about yesterday.

            In the past 6 months, there were two significant transitions that occurred at RIM:

            1. Morphing from a smartphone company into a mobile computing company with the release of the PlayBook and QNX integration in vehicles and other mobile platforms to come.

            2. Replacing the aging BB OS to one based on a multiprocessing/ multithreaded/ multitasking QNX core while maintaining relative “compatibility” with existing apps. Of course, this has not been fully realized yet, but we’re seeing some work in that direction with BB 7.

            I think, all in all, the damage of their “transitions” could have been better managed, but they did fine. Things will bounce back a bit.

            Nevertheless, this couldn’t have come at a worse time for RIM as it allowed Android to creep into the #1 spot. I think some Android users will eventually come back to BlackBerry when the QNX superphones come out. Those that have left will be gone for at least a year while their contracts are still active, so there will be no huge numbers flocking back to BlackBerry.

            As BBAddict suggests, the 6-12 months will be huge in garnering more subscribers on the BlackBerry platform. A QNX core will do just that.

            RIM continues its stronghold on the enterprise market. RIM continues to excite the general consumer with great new devices. Albeit, BB 5 devices were pathetic and BB 6 devices were a little lame. Still, you may not be excited about these BB 7 devices, but I certainly am! These are most certainly the best BlackBerrys ever by a long shot, and they will do very well in the marketplace.

            • I think when comes down to it, the core stakeholders in RIM, understand the current state of affairs.

              Regular stockholders don’t sway the big shareholders.

              • Thank God for that! Way too much bitching going on about the CEOs the last month or two. I think they needed a bit of a reality check (i.e., no refresh devices!), but certainly not their removal.

            • Have you notice that of all the BB 5 devices and BB 6 devices this the only time they say BB 7 devices and actually have 7 devices haha.

              Most OS 5 & 6 devices were upgrades technically it wouldn’t count.

  3. With tech stocks being down the last few months its a good time to pick these up at low prices. I know I’ve been watching alot of them. Hard part is figuring which ones to buy on limited investing budget.

  4. Just prior to the release of new products is a good time to BUY! Of course, mutual fund managers sell all the time when they see a period of slow growth. It’s all about predicted earnings forecasts. RIM will have a really nice quarter coming — almost guaranteed to be their best!

    With a much rejuvenated product line, the prospects of a 3G PlayBook with native email & calendar running Android apps, and the promise of QNX superphones on the horizon, the future looks much brighter than it did even on January 1st of this year.

    RIM also has two more devices to come this year: the Bold 9790 and the new Curve 9370. This will help make the quarter even brighter (although I would like RIM to concentrate on fewer devices to make it easier to roll things out).

  5. I think Yachtman see some potential in RIM for spending that much if he as the best record over the past 10 years.

    I would wanna invest in RIM too with all these new devices is ntn but continued growth for RIM at this point.

  6. And I think everybody should make a purchase in rim stock this guy has a proven track record along with Charles schwab and other big names the next two years are interesting for rim

  7. Buy companies with strong financial statements low, sell high. If you bought BP right after the oil spill, that would be a nice holding right now, RIM price is low but they aren’t necessarily going bankrupt. Stock price can be affected by so many things and stock price does not necessarily reflect financial strength of the company.

  8. I thought it was a good buy until I saw pricing for upcoming phone.

  9. I still don’t understand how BB Addicts pass on a very important point here

    We’re all hyped up about the NEW BB’s coming our way, OS7 & great Phones, especially waiting for the QNX to be out in 8-12 Months, But..

    The OS7 Phones rolling out now will not be QNX Compatible :-(
    So, going into a New 2 year contract now will slow down the QNX migration…

    Someone pls correct me if I’m wrong (I hope so)

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