Lock on Stocks vol. 2


Hello ladies and gents, boys and girls, CrackBerry addicts of all ages. Welcome to another addition of Lock on Stocks. In this weeks edition, we’ll go much more in depth with coverage on RIM, Apple, Palm and Motorola. I’d love to say we could include Microsoft on our list but they seem a bit busy with Vista this week to worry about anything else. I am at work today plugging away at this in between phone calls and emails so if I start talking about something that makes no sense to you, please understand that my multifunction skills are not that great. Well, let’s get to it.

This week Apple had two big wins. In their first game Apple and Cisco tied by settling on their iPhone dispute. Both of the companies will use the name. How this will end up working out is anyone’s guess. In last weeks article I talked a bit about the BlackBerry/Blackjack chicken fight that caused the uproar of naming issues – neighbors and families across the world actually started fighting about their brand new babies and who got to name their new born Alisha first and why. It was quite a sight. Anyway we discussed this name issue and the next week what do we see? Apple and Cisco playing nice. Did they not learn anything from RIM or Samsung? I see this one going absolutely nowhere fast and I’m sure there will be plenty more battles between the two. The settlement news however raised Apple’s stock a solid $3 a share on Wednesday.

Also on Wednesday, I forgot this was a doubleheader for them, Apple scored big by stealing Rebecca Van Dyck away from Nike. Van Dyck, a global account director for Nike with Wieden & Kennedy has been appointed Apple’s new director of worldwide advertising. In her 12 years with Wieden & Kennedy, Van Dyck worked exclusively on the Nike brand.

Maybe we’ll see Michael Jordon on his iPhone while dunking over Bill Gates?

On to our first big loser of the week, Motorola. Wow you almost have to feel bad for these guys. First off the head of Motorola’s cell phone business, Ron Garriques, resigned on Friday jumping ship to Dell. After two years of success with the Razr, faltered performance, very, very poorly made phones and stiff competition has lead Garriques to say “Goodbye Moto.” With Ronald leaving his post Motorola’s stock took a quarter of a dollar hit.

Also this week their stock took a 30 cent drop with news from the latest inflation report confirmed that interest rates would not be dropping soon. Other companies feeling this were HP and JetBlue to name a few.

Big news for Moto this week was the announcement from Chief Financial Officer David Devonshire, who stated that the first half of 2007 will be “rocky.” Motorola posted very weak fourth-quarter results last month. Mainly hurt by the sharp fall in prices on their phones, primarily their “flagship” Razr, as it tried to maintain market share amid stiff competition. News of this acknowledgement slightly raised the price of the stock roughly 20 cents.

Our middle man of the week is Palm. Last Friday Palm and Telstra announced the Treo 750 in Australia. The new Treo is the first to take advantage of the new 3G technology as it is HSDPA ready. The stock however dropped roughly quarter of a dollar. People in the states must be getting pretty impatient waiting for G3 here.

This week Palm also announced, with Verizon, the launch of the Palm Treo 700wx. The new Treo will run Windows mobile 5.0, have a full QWERTY keyboard, and everything else every other Treo does. Not quite sure what the hype about this “new” Treo is but it’s got Wall Street talking, quarter of a dollar increase for Palm.

In other news Palm has issued a Daylight Savings Time fix. Another quarter of a dollar increase with the news. Not sure why though. I guess however almost any good news from Palm is something to celebrate on Wall Street.

Now on to RIM. Jim Balsillie claims that RIM will be throwing its proverbial hat into the Internet Music Delivery industry. The chief calls the current system of downloading music through digital rights management software “messy” with consumers often being charged twice due to incompatibility between the software and devices. This is where RIM comes into the picture. Balsillie states that its current communications framework provides it with a huge advantage over such competitors as Apple due to the fact that it can provide both the business end of communications as well as the consumer end. Balsillie made these comments at the RBC Dominion securities conference in Toronto. A RBC analyst expects to see RIM announce the deals on music and imagery for its consumer line of BlackBerries before the end of 2007. In addition Balsillie predicts that they will add nearly one million new BlackBerry users this quarter alone.

The big news of the week again however is the official release of the 8800 by Cingular this past Tuesday. Stock increased $3 a share with the release leveling RIM out at about $141 a share at the time of this writing. The new 8800, as you all know, is a full QWERTY version of the Pearl minus the camera. Reports earlier stated we’d see WIFI on it however that is not the case. It did however come equipped with built in GPS. On a personal note if you haven’t played around with one of these yet I highly recommend doing so.

Rumors are also rampant regarding the 8820 and 8830. Stay tuned to Blackberrycool.com for all of the info regarding these rumored devices.

Until next week.

  • Thought

    Great column, Paul. A great retrospective on the week…plus, I love reading about stocks and the influences on their pricing. Keep up the good work!

  • Thought

    Great column, Paul. A great retrospective on the week…plus, I love reading about stocks and the influences on their pricing. Keep up the good work!

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