Carl Icahn may Buy Stake in Research in Motion - Shares Surge (RIMM)

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Uploaded by on Sep 27, 2011

Rumors are swirling this morning that activist investor Carl Icahn may purchase a stake in Research in Motion (NASDAQ:RIMM). Following his failed attempt to replace Clorox's (NYSE:CLX) board or directors, Icahn may be looking for another opportunity to put pressure on management. Icahn has not yet commented on the rumors.

In the past 6 months, Research in Motion has seen the price of its shares fall more that 50% following disappointing quarterly earnings and lowered guidance, and seen its market share steadily erode. Most recently, it was announced that their retail partners would slash the price of the BlackBerry Playbook Tablet.

Shares of RIM are trading up over 6.5% to $23.10 on the news.

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  • First, Carl Icahn isn't dumb. RIMM and Palm management were both asleep at the wheel when Apple and Android/Google passed them by. Now Amazon's Kindle Fire has passed by RIMM's Playbook. Have you ever seen a young person with a Blackberry device? What value did Palm add to the bottom line of HP, none. What value does RIMM add if acquired by another company, none. If you think a Blackberry device has value, compare the auction prices of previous generation iPhone 3GS >$300 and Tour9630<$150

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