TORONTO - A Canaccord Genuity analyst has put a "sell" rating on Research In Motion shares (TSX:RIM) (Nasdaq:RIMM), saying they have become overpriced on public markets compared with the company's underlying business fundamentals.
The stock closed Friday at C$11.59 on the Toronto Stock Exchange and fell 26 cents in early trading after the report was issued.
Canaccord Genuity analyst Michael Walkley has set the firm's price target for RIM shares to US$10 — substantially lower than estimated price targets issued by other analysts in recent weeks.
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Apple CEO <a href="http://www.huffingtonpost.com/2012/09/28/tim-cook-apology-apple-maps_n_1922378.html">Tim Cook issued an apology</a> Friday for the company's new Maps app. Cook directed users to other map apps in the Apple store or websites like Google or Nokia until Apple's version is fixed.
Bank Of America Debit Card Fee
Bank of America announced last year that it was planning to charge customers a $5 fee to use their debit cards. After an intense customer backlash, the <a href="http://www.huffingtonpost.com/2011/11/01/bank-of-america-debit-card-fee_n_1069425.html">company dropped the plan</a>.
In 1985 <a href="http://www.msnbc.msn.com/id/7209828/ns/us_news/t/it-seemed-good-idea-time/#.UGXCa_mfHll">Coca-Cola decided to mess</a> with its iconic product, according to NBCNews.com. The result: Epic failure. With customers comparing the change to trampling the American flag, the company pulled the product after just a few months.
Pepsi <a href="http://investorplace.com/2011/02/loud-sun-chips-pepsi-branding-disaster-failure/">launched a clear version</a> of its cola drink in 1993, but the product didn't last long. The company pulled it from the shelves in 1994, according to InvestorPlace.com.
Lawn darts, everyone's favorite 1980s backyard game, turned out to be pretty dangerous. The Consumer Product Safety Commission <a href="http://www.popularmechanics.com/technology/gadgets/toys/4347051#slide-1">recalled the toys in December 1988</a> after many were injured and three people died sending the steel darts through the air, according to Popular Mechanics.
In 1957, Ford launched the Edsel, a car the company billed as hot and revolutionary, according to the <em>Washington Post</em>. Problem: <a href="http://www.washingtonpost.com/wp-dyn/content/article/2007/09/03/AR2007090301419.html">It turned out to be sort of "blah."</a> By the time the company pulled the car in 1959, it had lost about $250 million.
When it debuted in January, 2007, Microsoft's newest operating system was <a href="http://www.spike.com/articles/n2yhee/the-top-10-epic-fails-in-product-launch-history?page=2">slammed by consumers</a>. As a result, businesses and personal computer users were slow to adopt it, according to Spike.
The Arch Deluxe
McDonald's launched a luxury burger geared towards the adult set in 1996 with a <a href="http://www.nytimes.com/1998/04/19/magazine/steal-this-burger.html?pagewanted=all&src=pm">$100 million advertising campaign</a>, according to <em>The New York Times</em>. But the mature hamburger was ultimately a flop.
In 1993, Apple <a href="http://www.dailyfinance.com/photos/top-25-biggest-product-flops-of-all-time/#photo-11">launched the PDA device, a precursor to the palm pilot</a>, according to DailyFinance, but it turned out to be a bust, thanks to its high price and bulkiness. The company pulled the Newton in 1998.
Sony poured <a href="http://articles.latimes.com/1989-09-28/business/fi-409_1_sony-corp">20 years of research into its Betamax</a> videocassette recorder, but was ultimately beat out by the competition, according to the <em>Los Angeles Times</em>. Matsushita developed the VHS system, which became more popular among companies making the devices -- and companies making films -- rendering the Betamax obsolete.
In September of last year, Neflix announced that it would be separating its online streaming service from its DVD service and calling <a href="http://www.huffingtonpost.com/2011/12/30/tech-fails-2011_n_1173313.html">the DVD branch "Qwickster."</a> The proposal turned out to be such an epic fail that the company scrapped the experiment last November before it even launched.
Clairol's "Touch Of Yogurt" Shampoo
When Clairol came out with its yogurt-based shampoo in 1979, they thought it would be a success, thanks to <a href="http://www.huffingtonpost.com/2012/01/06/worst-product-launches-ever_n_1182219.html">widespread interest in the test marketing</a> phase. But it turned out to be a flop; customers apparently don't want to put food in their hair.
BlackBerry launched its Playbook without apps for email, contacts or any of the other things people use tablets for. The result: The <a href="http://www.huffingtonpost.com/2011/12/30/tech-fails-2011_n_1173313.html#s577006&title=BlackBerry_PlayBook">company slashed prices</a> on the device as the holidays approached.
Toshiba's HD DVD experiment ended up <a href="http://www.zdnet.com/blog/storage/hd-dvd-post-mortem-why-did-toshiba-fail/294">being trounced by Sony's</a> Blu-Ray player as studios and customers opted for the latter.
The car deemed by many to be one of the worst vehicles ever exported to the U.S. was met with widespread criticism when it <a href="http://www.cbsnews.com/2100-500395_162-4616249.html">landed on American shores in 1986</a>. Available for just $3,990, the car did terribly in crash tests, according to CBS News.
Nike Black And Tan Sneakers
Nike launched a sneaker (not pictured) in the lead up to St. Patrick's Day that offended some Irish people. The shoe called "Black and Tan"<a href="http://www.huffingtonpost.com/2012/03/14/nike-black-and-tan_n_1344197.html"> shares its name</a> with a British paramilitary unit that attacked Irish civilians in the 1920s.
Walkley writes that the BlackBerry 10 product line that's due out in January appears to be "dramatically improved" and more competitive than the earlier BlackBerrys but he says that probably won't be enough to sustain RIM long-term.
Walkley writes "our checks do not indicate the consumer pull, carrier push, or developer excitement necessary for BlackBerry 10 to reverse the challenging trends faced by RIM in order to return the company to sustained profitability.
"As a result, we downgrade to SELL based on our $10 sum-of-parts analysis," Walkley says.
A sum-of-parts analysis attempts to calculate what a company would be worth if some or all of the business were sold, rather than continuing as an independent entity.
There has been a recurring notion that Research In Motion, based in Waterloo, Ont., should split its device-making arm — which competes with Apple's iPhone and Android-based smartphones — from its network operating business.
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