Activist: Can RIM Survive on a Stand Alone Basis?
Shares of Research in Motion jumped on Tuesday after a major shareholder demanded big changes at the beleaguered BlackBerry Maker
The activist agitating for change is Jaguar Financial, a merchant bank that targets underperforming companies, according to Reuters. With control of an 8 percent stake, Jaguar's attempts to generate change could light a fire under the board.
In a live interview on CNBC, Jaguar Financial chairman and CEO Vic Alboini tells us he’s pushing for 3 things:
-Replace co-CEO’s Mike Lazaridis & Jim Balsillie
-Select Independent Chairman
-Sell company as a whole or in parts
It’s no secret that the BlackBerry maker has made more than its fair share of missteps – and that’s partly behind Alboini’s dissatisfaction.
Also, RIM shares have declined over 50% since the start of the year – and that too is likely behind these developments.
But Alboini suggests there’s another – perhaps more pressing reason sparking his call for action.
”Can RIM can survive as an independent company?” he asks. “RIM has a $1.4 billion in cash. Apple has $76 billion, Microsoft has over $50 billion and Google has over $30 billion. Who’s going to win this race?”
Although he didn’t come out and say it – he suggests that the best thing would be to split RIM into 3 separate companies - a device company, a network company and a patents company.
Should that happen, advocates of the split believe it would be possible to generate a strategic alliance or outright sale with either HTC, Microsoft or Samsung.
What are the odds of Alboini getting what he wants?
Fast trader Joe Terranova isn’t impressed. After the live interview Terranova says, “He was talking too much in generalities. I could have said the same thing. That was disappointing. He’s no Bill Ackman.”
CNBC has reached out to RIM, but management has not responded to a request for comment.
What do you think? We want to know!
IBM ‘BUY’ RATING AT STIFEL
Elsewhere in tech the traders were also watching the action in IBM, which made an all time high earlier in the week.
Adding to the momentun, Stifel slapped a 'Buy' rating on shares Tuesday citing strong Q3 earnings as a key catalyst. What should you make of it all?
Hear from David Grossman, the Stifel analyst who made that call.
Watch the video above!
CHART OF THE DAY – SHANGHAI
Looking at the chart of the day, the Shanghai Composite lost momentum in Tuesday s session and some pros think that’s a worrisome sign.
Trader Steve Cortes believes the biggest risk to the global recovery is still China and he doesn't like the action in the chart. "Shanghai rallied hard and then gave all of it up," he explains. "That’s very poor price action."
Trader Brian Kelly agrees. "It says domestic Chinese investors don’t think the government has the ability to influence the economy," he adds.
If you agree with their thesis, both traders suggest play it shortcopper , shortFreeport - the world's largest copper miner, or short the Aussie dollar.
DON'T FILL IT TO THE BRIM?
Looks like some Wall Street analysts aren’t keen for morning cup of joe from Starbucks. Diane Geissler initiated coverage of Starbucks with an Underperform rating.
Find out what Geissler has to say about two other stocks in her coverage universe, Yum! and McDonald’s . Watch the video now!
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Trader disclosure: On Oct 11, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long VRTS; Terranova is long LQD; Terranova is long MUB; Terranova is long FCX; Terranova is long TBT; Terranova is long OXY; Terranova is long HOS; Terranova is long F; Terranova is long LULU; Terranova is long OIH; Terranova is long CAT; Terranova is long AXP; Terranova is long EMC; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM; Terranova is long Silver December $40 puts; Edwards is long XLK
For Patty Edwards
Trutina Capital is long MCD
Trutina Capital is long POT
Trutina Capital is long SYT
Trutina Capital is long ORCL
Trutina Capital is long SBUX
Trutina Capital is long YUM
Trutina Capital is long MCD
Trutina Capital is long C
Trutina Capital is long PEP
Trutina Capital is long MAT
For Vic Alboini
For David Grossman
CNBC.com with wires.