# Blackberry's CEOS given the boot!



## carverman (Nov 8, 2010)

Due to falling fortunes, RIM CEOs were told to resign by the board of directors, as the companies fate is now precarious and if they want to sell it to an interested party (as has been hinted), these guys have to be out of the way.

Question is whether RIM will survive long enough with the damage done to see the sale go through. On their own, it's only a matter of time, since investor confidence has been badly shaken.

In other news... the stockholders of Olympus Corp (the camera maker) are suing the company for the severe drop in stock value..over 200 million Yen thats about (2.6 million US)..not a lot compared to the hundreds of billions that Nortel squandered..
but at least it shows that in the current investment climate, investors are not about to be "fooled again"...

Where are "The Who" when you need them?

*We won't be fooled again*

"I'll tip my hat to the new constitution
Take a bow for the new revolution
Smile and grin at the change all around me
Pick up my guitar and play
Just like yesterday
And I'll get on my knees and pray
We don't get fooled again
Don't get fooled again

Change it had to come
We knew it all along
We were liberated from the fall that's all
But the world looks just the same
And history ain't changed
'Cause the banners, they all flown in the last war"


----------



## LondonHomes (Dec 29, 2010)

carverman said:


> In other news... the stockholders of Olympus Corp (the camera maker) are suing the company for the severe drop in stock value..over 200 million Yen thats about (2.6 million US)..not a lot compared to the hundreds of billions that Nortel squandered..


Well it's about time they replaced there co-CEO structure. Probably too little too late.

I don't understand the point of shareholder suing the company. Being a shareholder means that they own the company and already own a portion of the 2.6 million they are suing for. Are they not just simpling reallocating money from all other shareholders.


----------



## andrewf (Mar 1, 2010)

What do you mean 'see if they can survive long enough for a sale'? They are still quite profitable with a strong balance sheet. The market hates them, but I don't think they are in danger of going bankrupt any time soon.


----------



## canadianbanks (Jun 5, 2009)

andrewf said:


> What do you mean 'see if they can survive long enough for a sale'? They are still quite profitable with a strong balance sheet. The market hates them, but I don't think they are in danger of going bankrupt any time soon.


I agree that probably they won't go bankrupt anytime soon, but their future doesn't look very promising either...


----------



## carverman (Nov 8, 2010)

canadianbanks said:


> I agree that probably they won't go bankrupt anytime soon, but their future doesn't look very promising either...


Their cameras are not that good from a power consumption perspective.
I can't believe that they still want to use a 3V (2 AA batteries) in their
camera which just eats up those batteries twice as fast as the others..(high current consumption)..
(Canon, Nikon and Pentax to name a few... use the 6 volt system). 

A friend of mine bought one and couldn't couldn't rely on it for very long,
as even the rechargeables didn't last long. On that issue alone I wouldn't
buy one.

As far as the accounting scandal (cooking the books which is exactly what
Nortel did to undermine investor confidence and eventually go under)..
Olympus execs obviously didn't know what consequences an "innocent"
little deviation can mean in the long run.

<from online sources>
The TSE said on Friday that the company at the centre of a $1.7bn (£1bn) accounting scandal would not be delisted.

It did impose a minimal fine of 10m yen ($130,000; £83,600) and put the company's stock "on alert".

The decision means Olympus will still be able to access equity capital.

*Olympus was first put on a watch list for possible delisting on 10 November after it admitted to hiding losses from investments.* <end of online extraction>

Nortel tried that same trick..was discovered, investor confidence dropped as quickly as the stocks, the stocks
go delisted by the TSE once they became penny stocks..and there are lots of investor/stockholder lawsuits that
will take years to unravel by the courts..as the company being defunct has limited compensation from the sale
of the assets.

Moral of the story.."if you fix the books..and undermine stockholder confidence..be prepared to pay a big penalty..
not just the SEC fines!


----------



## carverman (Nov 8, 2010)

LondonHomes said:


> Well it's about time they replaced there co-CEO structure. Probably too little too late.
> 
> I don't understand the point of shareholder suing the company. Being a shareholder means that they own the company and already own a portion of the 2.6 million they are suing for. *Are they not just simpling reallocating money from all other shareholders*.


Cooking the books to make the company more profitable than it is..to get bigger bonuses for the execs..is now "the writing on the wall" for the company...whether they survive long term depends on how they manage to crawl out of the investor confidence morass...."hole" they have created now. 

Nortel tried that..and it backfired on them..they went bankrupt within 5 years of cooking the books..and now three execs are on trial for fraud in Toronto for cooking the books.


----------

