Primecap doubles RIM stake in vote of confidence

By on Aug 8, 2011 at 4:45 PM
Business August 8, 2011

Pasedena, California-based investment management firm Primecap Management Co. recently doubled its investment in BlackBerry vendor Research In Motion. According to a recent regulatory filing, Primecap now owns 26.4 million shares of RIM stock valued at about $577 million as of Monday’s close, and the stake represents approximately 5% of RIM’s total outstanding shares. According to Bloomberg, Primecap’s stake at the end of the second quarter of this year was approximately 2.5%. As numerous analysts continue to cut their price targets on RIM stock, Primecap’s continued investment could represent a vote of confidence in RIM’s new BlackBerry 7 phones and its future QNX phones as well, which are due to begin launching in the first quarter of 2012.

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21 Comments

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  • QNX Please

    Smart move, RIM is trading at a P/E ratio of less than 4, it’s market cap is almost worth the amount of assets RIM has. With strong sales outside of USA, and new products coming withing the month, RIM investors will benefit. Even if RIM doesn’t bounce back, it will be take over bait and their assets alone are worth what it’s trading at right now.

    • Shanghai Dan

      Someone actually understands finance, stocks, and investing!  It’s a steal right now – and with Blackberry actually gaining share in some markets (like the UK), and still the backbone for business and Governments worldwide, they’re not going to go away anytime soon…

    • Chairman Miow

      Yep. The classic dead cat bounce candidate.

  • http://twitter.com/HireMeAccenture HireMeAccenture.com

    They’re very confident in BlackBerry!

    Help Me Get A Job Please!
    www[dot]hiremeaccenture[dot]com

    Leave A Comment!

  • http://www.facebook.com/people/Ashton-Wallton/100002743130252 Ashton Wallton

    I just paiid $21.87 for an iP a d2-64GB and my girlfriend loves her Panasonic Lumix GF 1 Camera that we got for $38.76 there arriving tomorrow by UPS. I will never pay such expensive retail prices in stores again. Especially when I also sold a 40 inch LED TV to my boss for $657 which only cost me $62.81 to buy. Here is the website we use to get it all from, http://x.co/YpCG

    • Shanghai Dan

      But how much did you pay for a new Blackberry Storm?  Inquiring minds want to know!!!!

  • Max

    I’ll still short this sumbitch

    • Steve Jenkins

      Max, why couldnt ALL of you run down your mothers leg?

  • Anonymous

    Lol. So dumb. This isn’t a vote of confidence. Primecap has doubled their stake in RIMM shares now because they are averaging down. Is their 26.4 million shares worth 577 million? Yes. That’s Awesome. Too bad they are into RIMM shares for about 1.5 BILLION. They have been investors in RIMM for years. Too bad that means they bought up high. LMAO!!! Sadly this is my favorite reporter Zach making a false assumption. Primecap is basically FUCKED. they are praying for a spike up to $50 range so they can get the fuck out but it will never happen. RIM is dead. true story™©®

    • Balls Street Journal

      Actually, this is a vote of confidence of sorts. Plenty of firms with big investments bailed, like Jarislowsky, but Primecap is buying more shares to recoup as much as possible in anticipation of a rebound. Ie, it’s a vote of confidence that the stock will rebound.

      You’re a troll, not a trader. Let’s stick to what we know.

      • Anonymous

        Dead cat bounce. Doesn’t mean a vote of confidence in my books. It’s a traders trade. Trying to pick a bottom. The plenty of firms that bailed could be considered smart and primecap stupid. But if u want to sugar coat it and call it a vote of confidence of sorts go for it.

      • Grumplestiltskin

        Damn! Scroat got pwnd so bad he forgot his true story™©®

        Mark it zero, Dude.

      • Grumplestiltskin

        DAMN! Then he went back, edited his post and added it like a weasel without even replying!

        Double pwnd!

      • Steve Jenkins

        Your such a tool…

  • Anonymous

    Would be the same as betting the Buffalo Bills to win the 2012 Super Bowl @ 150-1 odds…….except watching the NFL would bring more enjoyment as the money flies away……

  • Anonymous

    All this means is that RIM can maintain value before they get sold, as the stock will continue to sink. They’ll be below $20 at the end of this week. By the time they’re ready to sell, the stock price will be well below $10. Oh well!

  • Anonymous

    The bad news: it only cost Primecap $7 to double its stake. 

    • sirpaul

      “Primecap now owns 26.4 million shares of RIM stock valued at about $577 million as of Monday’s close…”

  • http://twitter.com/manozz Gundruk

    Google please buy RIM and go to patent war with Apple and tear them apart.

    • Anonymous

      Ewww Android on Blackberry?…..

  • http://pulse.yahoo.com/_CJEX6WIBYZEEOBZGPNNWJYXABQ Steve

    told you, RIM’s not dead yet!

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