Who might buy? A few names come to his mind. “It’s an opportunity for someone like Microsoftto go in and sell exchange servers at the carrier level. Google could also do that,” said Ernst.
That said, a “buy” rating on RIM is still considered left-field by most of the Street — and Ernst is humble about it. “Any number of things could go wrong with this call,” he conceded. “I’ve been both right and wrong on this stock in the past.”
If he’s not certain what will happen, Ernst throws his certainty behind what he thinks should happen.
“First and foremost, has their board realized that they really need this? If you look at recent history of aHewlett-Packard or aNokia — assets can always get cheaper,” he said. “So this is probably now or never for RIM. The market clearly doesn’t have time to wait.”
—By CNBC’s Jennifer Leigh Parker
Additional News: RIM Stock Plunges on Earnings MissAdditional Views: RIM Earnings Shocker? Options Traders Think So
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Disclosures:
Daniel Ernst does not personally own shares in RIMM, nor does his firm, Hudson Square Research.
Disclaimer
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Follow Jennifer Leigh Parker on Twitter @jparker741.