It's not news that BlackBerry maker Research In Motion has had a horrible year. But it seems that the once mighty smartphone maker has been beaten by another iconic Canadian brand, Tim Hortons.
At the end of the trading day on Friday, the doughnut and coffee chain is now worth $7.76-billion compared to RIM's $7.32-billion. RIM, which was once one of Canada's top stocks, is a shadow of itself. For comparison, the TSX's top stock Royal Bank of Canada has a market cap of $70.3-billion and Potash Corp. is worth $33.5-billion.
“The company has been whittled down to levels we wouldn’t have contemplated even less than a year ago,” Greg Eckel, a money manager with Morgan Meighen & Associates Ltd. in Toronto, said in a telephone interview to Bloomberg. “It’s just a massive failure,” Eckel added.
On Thursday the company's stock was battered when it profits 70% lower than this time in 2010. RIM's shares dropped 11.5% on Friday on the results, possibly spurred by news that it would have to delay the launch of its new BlackBerry 10 smartphones.
The company has also been plagued by a series of missteps: The massive failure of its PlayBook tablet, losing a trademark dispute over the name of its new operating system, and erosion of market share to rival smartphone makers.
On the other hand, doughnut chain Tim Hortons has seen a 20% rise in its stock and expanded its product line to include espresso-based drinks and "lasagna". The chain also opened stores in
the United Arab Emirates.