RE: Early musings on financials Well Yasch, it was fun playing this guessing game, but
i don't know anymore because this new CEO is pulling out lots of new surprises
... all those new cuts with justifiable reasons.
I don't know if its the kitchen sink cleansing or he wants the stock down so
the Insiders can accumulate shares outside the company.
Remenber Manual Life Financial, the Ceo was new 3 years ago, and he started cutting
the stock value like crazy.. eg cut dividend, issue more shares etc.
What happened ?... the stock is still trading at its 10 years low.
He justified this by saying its the low interest rate and not blaming his hedging costs.
The big Banks are benefiting from his action by holding the stock down and writing three cover calls
plus a dividend every Quarter.
Heins also is operating outside the box and the big banks might also
keep the share price down with their options' strategies
Coming back to RIM guessing game.
RIM said they will maintain their cash position of $2.2B and they can easily do that
unless they want to shock us again.
The shipment should be more that the last Quarter of 7.8M because in the last 2 Quarters
they sold 25.1M phones ( Q4 +13.6M + Q1 2013 = 11.5M) and shipped 18.9M phones ( 11.1M + 7.8M)
This is a reduction of the Carrier's inventory of phones by 6.2M
So in Q1 they sold 10.5M phones and if the Carriers' inventories have depleted enough, then
they will have to ship more phones if the sell through in Q2 is anything near Q1 sales.
on the flip side, the account receivable is still fairly big , indicating lots more
phones held by the Carriers and a reflection on how bad RIM's inventory control system is.
Only my opinion.