NEW YORK, June 19 (Reuters) - Barron’s financial weekly said it “goofed” in its bullish view of BlackBerry maker Research in Motion RIM.TO two months ago, with the only choice now being to sell the shares.
RIM has easily been Barron’s worst pick if the year, as shares have toppled 48 percent since the paper’s recommendation, Barron’s said in its June 20 edition.
“The company’s best hope now is a takeover, but there’s no suitor in sight,” according to the paper. “Cheap as the stock has become, the only choice is to sell.”
Barron’s said it underestimated RIM’s difficulty meeting white-hot competition. RIM last week reported quarterly sales of its smartphones were down for the first time since 2005, driving its shares sharply lower. [ID:nL3E7HH1AW]
RIM has repeatedly delayed new products and is in dire need of better models, just as Apple (AAPL.O) readies the next iPhone and Google’s (GOOG.O) Android operating system spawns a new class of rivals, according to Barron’s.
“Our biggest mistake was to put too much faith in RIM’s co-CEOs, Mike Lazaridis and Jim Balsillie, whom we’d long admired. They’ve not only disappointed us; they’ve done worse than some bears expected,” the paper wrote. (Reporting by Lynn Adler, editing by Maureen Bavdek)