Northern Securities analyst Sameet Kanade, recently wrote an open letter to RIM, asking the company to consider dropping Balsillie as a co-CEO, among other recommendations. There are other analysts who seem to be echoing this sentiment such as Charter Equity analyst Ed Snyder, who said “Jim and Mike brought the company to where it is … which is part of the biggest problem they’re facing.” He added, “They’re stuck in the past. They know what worked and keep playing that card and it’s not working any more, and they don’t seem to have any ideas.”
To remove Jim or Mike would be really difficult. At a capitalization of $23 billion, investors would have to fork over more than $1 billion to gain enough control to have any influence. Some analysts are suggesting it may happen with an activist, a person who invests in the company and attracts other like-minded investors to help gain control. One way to defend against an activist is to raise the stock value and make it more expensive to gain control of the company. In the past year, RIM has lost a quarter of its stock price, which now is very undervalued. It’s not clear if anything will satisfy the naysayers, or if they’re just out to slam RIM regardless of what it does.