Again Research in Motion landed on the radar with traders wondering if the latest negative development would be the catalyst that triggered major changes at the company.
Specifically, in the latest in a drumbeat of dismal news, Research in Motion warned on Friday it would fall short of its financial targets after taking a huge charge to write down inventories on its languishing PlayBook tablet, and its shares tumbled on the news.
And in the wake of developments, activist investor Vik Alboni of Jaguar tells us that he and an association of 17 shareholders that control approximately 10% of the company are working actively trying to unlock shareholder value.
However, it may take a little time.
Alboni also tells us, “we don’t want to be Carl Icahn – we want to be Canadian. We want to focus on a smart and efficient response. This is a marathon and not a sprint.”
Nonetheless, he does say his ultimate goal is to drive shares higher. And when Alboni and his associates consider the handset business, cash, real estate and patent portfolio, they think shares should trade north of $30.
With shares around $17, trader Pete Najarian thinks RIM sure looks tempting. “At some point there’s got to be some value,” he says. “At these levels I get interested but so far they’ve shown us nothing.”
Trader Josh Brown just can’t pull the trigger either. “It’s in a 2-year downtrend,” he says.
But don’t take that down tend as a sign to go short. Trader Steve Grasso adds that “it’s too risky to be short in a stock that’s declined with such magnitude.”
And if you’re looking at the stock as a takeout target, that too may not be imminent.
“The market cap is still too rich for a buyer to step in,” says Josh Brown. “I think it gets worse before it gets better.”
But that's not to say there isn't some optimism in this name. On Wednesday, billionaire investor Leon Cooperman told us he recently went long. ”It’s a small position and hopefully we’ll develop greater conviction after they come out with results in December. We’re hoping they’ve seen the worst.”
What do you think? We want to know!
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Trader disclosure: On Dec 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long AAPL; Najarian is long C; Najarian is long JPM calls; Najarian is long WFC calls; Najarian is long INTC; Najarian is long YHOO; Najarian is long PFE; Najarian is long TEVA; Brown is long VOD; Brown is long SBUX; Kinahan is long C; Kinahan is long GS through options; Grasso owns AKS; Grasso owns AMR; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Ilczyszyn is long gold; Ilczyszyn is long Oil; Ilczyszyn is long Euro
For Steve Grasso
Stuart Frankel & Co. and its partners own CSCO
Stuart Frankel & Co. and its partners own CUBA
Stuart Frankel & Co. and its partners own GERN
Stuart Frankel & Co. and its partners own GM
Stuart Frankel & Co. and its partners own HPQ
Stuart Frankel & Co. and its partners own HSP
Stuart Frankel & Co. and its partners own HSPO
Stuart Frankel & Co. and its partners own JPM
Stuart Frankel & Co. and its partners own MET
Stuart Frankel & Co. and its partners own MSFT
Stuart Frankel & Co. and its partners own MU
Stuart Frankel & Co. and its partners own NYX
Stuart Frankel & Co. and its partners own PRST
Stuart Frankel & Co. and its partners own RDC
Stuart Frankel & Co. and its partners own UAL
Stuart Frankel & Co. and its partners own WFT
Stuart Frankel & Co. and its partners own XRX
For Colin Gillis
RESEARCH IN MOTION (RIMM): Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.
For Vic Alboini
Alboini and a group of shareholders own 10% of RIMM shares
For Fadel Gheit
VALERO (VLO): Oppenheimer & Co. Inc. expects to receive or intends to seek compensation for investment banking services in the next 3 months from VLO.
For George Davis
RBC is a market maker in European currencies
For Catherine Arnold
PFIZER (PFE): I, Catherine J. Arnold, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.
CNBC.com with wires.