Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) will face a lot of questions from investors in its annual meeting to be held on Tuesday, says a report from Reuters. The smartphone maker posted weak results due to which the shares of the company declined 28 percent.
Sales figures revealed by the company in the first quarter were less than analysts’ expectations. Other figures were also dismal and could not trigger the hope that the company will succeed in winning back its market share from Apple’s iPhone, Samsung Galaxy range and other Android smartphones.
Brook Asset Management was up 7.27% for the first quarter, compared to the MSCI GBT TR Net World Index, which returned 3.96%. For March, the fund was up 1.1%. Q1 2021 hedge fund letters, conferences and more In his March letter to investors, which was reviewed by ValueWalk, James Hanbury of Brook said returns during Read More
“The results were a quasi death knell for BlackBerry,” said John Goldsmith, the deputy head of equities at Montrusco Bolton, which owns more than 1.5 million Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) shares. He added that the share price movement last week was extremely volatile, and investors could raise tough questions in the annual general meeting.
BBRY CEO Optimistic
For the second quarter also, Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) has predicted loss. However, Chief Executive Thorsten Heins said that the strategy of the company is well on track.
Heins said that this year the Ontario, Waterloo-based company is pumping the funds diligently in order to reap benefits in the future.
Heins also said that Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) will follow its strategy and will launch more devices powered by the BlackBerry OS 10 operating system in the coming eight months. He said that the company will be following the same roadmap that has been approved by the board.
According to some investors, the company should consider selling its subsidiaries. Bankers and investors hold the view that technology companies might be interested in purchasing the patent portfolio and profitable service business of Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB). However some investors hold the view that BlackBerry will face more decline in its value if it keeps on incurring losses and losing subscribers.
Shareholders also hold the view that it is not certain that Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) will emerge successful even after its turnaround strategy and in that case the foreign regulators should consider the bid of any foreign company.
According to a source, the board will think of revising its plans and strategies after witnessing the steep decline in the share price of the company.
Don Yacktman of Yacktman Asset Management said that the board is responsible for these strategies and surely it will do something, which would be beneficial for the shareholders. Yacktman Assert management holds 5.8 million shares of Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) and is among the top 20 investors.