“Too much ails RIM ,” says Fast Money trader Joe Terranova. And despite reports that RIM hired JPMorgan and RBC to review strategic alternatives, Terranova says stay away.
RIM also said there would be significant headcount reductions in some areas, confirming recent reports of job cuts.
“Typically this kind of news sends share higher,” adds trader Tim Seymour. But not this time. Shares tanked in the after market, sliding well over 10%. “I think the market is once bitten and twice shy,” he says.
Seymour is referring to forecasts, also released after the bell, in which RIM warned it may report its second consecutive quarterly operating loss.
“In our opinion the company should be broken into two parts,” says activist investor and RIM shareholder Vic Abolini on CNBC’s Fast Money. “It should break into a hand set business and a software and surfaces business.”
But even if they were to do that, Jefferies analyst Peter Misek isn’t sure the company would attract buyers.