Archive for February 3rd, 2012

RIM faces short term bounce!

Friday, February 3rd, 2012

All of us are very well aware of the master mind behind the Blackberry operating system. Blackberry ruled the market immediately after its launch. The operating system RIM was so powerful that it out shadowed the popular operating systems like iOS. It was so clear that people loved their new smart phones. But then RIM entered the new financial year of 2011.

RIM has been facing ups and downs in their company and trading since the start of 2011. Everyone knows that it was a bad year for RIM, very bad. The all new Blackberry Tablet didn’t work in the market and finally they ended up selling their Playbooks for discounted price. Also, their new range of Blackberry Smart phones could not create furor in the mobile market as Android and iOS was already ruling the market.

Recently it was reported that the company is again planning to make chief executive level shifts without any new strategic directions.  Rim stocks are also not going up and still RIM makers are not thinking of any great innovative strategy. God knows what they are up to!

With these changes, RIM also faced a showdown of about 8 percent in their stock prices. Earlier there was an instance, where the stocks were oversold that actually created short term edges and thus went higher and higher.  But now, things can’t go worse than this for RIM, as the stock’s latest rally into overbought field.

This is a very rare moment in the entire lifetime of Research in Motion as the conditions previously were low, but now they are going lower. Thus, this made sellers to finally put the stock down in an agitation of selling for trading on the first day of the week. Following the struggle of Research in Motion in the market, one thing is sure that every investor is going to think thousand times before investing their cash in this company.

Investors would surely follow the so called rule of buying stocks that are moving above 200/ day average. Investors would surely have lots of doubts in their minds related to Research in Motion’s slip in stock. Finally Research in Motion has entered the bear market territory of US trading market, and investors have lost all hopes of this company escaping this territory as soon as possible.  But it is said that the stocks which are running below 200 per day average are not able to cope up with the bear market territory tag.

And it is believed that even if Research in Motion fortunately gets out of this territory, it will surely make it to the top again. Let’s just wish them all the best! As it is observed that those companies who have luckily escaped this bear market territory have positively bounced back in the market. For instance, the Citigroup or the Bank of America made remarkable recoils in current week. Just like RIM, Citibank also faced the same condition, and their stocks were running lower and lower.

 

Panasonic going to face loss

Friday, February 3rd, 2012

ONe of the largest companies making home appliances since ages is facing loss in this new age of technology. Panasonic has speculated a total loss of $10.2 billion on Friday. At a press meet, Panasonic apologized for the loss.

Along with Sony, Panasonic has entered the sea of bright red ink, both are struggling to make up for their broken television business and get over the criticisms they had to face. Panasonic had faced this loss merely due to write downs and restructuring that also includes Sanyo Electric unit. The company is already heading towards $10.2 billion loss.

Panasonic is already in a big procedure of losing about 17,000 jobs by the end of March. Televisions are becoming smarter day by day, televisions can be connected to any other devices like tablets, smart phones, etc.thus, it is impossible to win over these televisions and create your own television line. Panasonic will have to hold the grip of their problems to level up their television business.

Also, Panasonic owners have no plans to shut down their television business. It is being purported that if Panasonic’s share market doesn’t stop going down continuously then they will surely need to think about some restructuring. Many investors are getting into the negative outlook about the company because of their continued losses in the business of television.

It’s not only the television business, but investors are keeping their hands away from Panasonic shares because of huge profit risks. People are not sure whether Panasonic will gain enough revenue in future. Earlier, Panasonic shares went down on Friday which is said to be lowest point for Panasonic shares in last 30 years. But fortunately they closed up at 1.2 percent just after the release of their quarter results.

On the other hand, Sony is all set to start with a new beginning with eight percent increase in its share price this Friday. So now even if Panasonic plans to expand their business in niche markets, the television sales are still forbidding.

Panasonic does look forward to construct an operating profit that leaves out one off bits and pieces such as restructuring charges even though this is now observed only at 30 billion yen, which are down from a preceding 130 billion yen. Last year the company had achieved an operating profit of about 305 billion yen. the company owner Mr. Ohtsubo only talked about company’s most sold products such as refrigerators, washing machines and various other household appliances, that has helped the company to rise up their quarterly profit by more than eight percent to 26 billion yen in which the operating profit was 8 percent.

The Panasonic owners have promised of bringing up new and new products in the market so that they can attract more local as well as global consumers. The firm is already into selling a huge range of items right from massage chairs, shavers and other kitchen appliances to fax machines, nose hair trimmers, lighted toilet seats and bicycle pumps. Still they are thinking of coming up with new series of products.