Globe says Vox's bearish calls on RIM, others provGlobe says Vox's bearish calls on RIM, others prove OK
2009-12-31 07:34 ET - In the News
Also In the News (C-YLO) Yellow Pages Income Fund
Also In the News (C-ZNN) Zenn Motor Company Inc
The Globe and Mail reports in its Thursday edition that Vox in 2009 made some prescient calls in 2009, including one to short Yellow Pages Income Fund. The Globe's Fabrice Taylor, writing in Vox, says his call to avoid Yellow Pages Income Fund proved a good call. Units were about $8 and are now $5.35. Not even a 15-per-cent yield skates you onside, he says. Mr. Taylor adds there there may be value in companies like Yellow Pages eventually, but at lower prices -- assuming they survive (they tend to have debt). Zenn Motor, which wanted to build electric cars, was north of $4 when he cast suspicion on it at the end of April. It did go to $6 but is back below $4 now. Mr. Taylor figures it is going a lot lower. Bearish calls on Research in Motion, meanwhile, were looking good until the latest quarter. On Oct. 9, he argued its best days were behind it (meaning the stock). It was quoted at $71 then, but very quickly sank to $60 before rebounding. Now, it's back to $71. He stands by his call, having recently upgraded some RIM software on my BlackBerry and found it way worse than the older version. Any company that allows inferior products to ship out the door is doomed.