Boy Genius: PR genius, but a disclosure nightmare part 2
Another week, another Boy Genius Report (BGR) BlackBerry leak. This time it’s the BlackBerry 9000, nicknamed “Niagara”.
Equally interesting, though, is the battle being waged among regular BGR readers over last week’s post (see “Boy Genius: PR genius, but a disclosure nightmare” May 2-08) regarding RIM’s (RIM:TSX, RIMM:NASDAQ) potential SEC disclosure troubles should it turn out that RIM itself is involved (directly or otherwise) in BGR’s non-stop access to exclusive market-moving RIM news. One can look down their nose at online chat rooms, but BGR has received more than 166,000 comments on its site since the forum was started. That is a hyperactive and knowledgeable readership base.
It’s no wonder that BGR gets all of the RIM exclusives. To the telecom and handset world, its TMZ.com and Perez Hilton all rolled into one.
Here’s just a smattering of the BGR banter:
Hey Boy Dumbass, I know reading comprehension skills are tough to master, so let me help you out a bit.
Here’s the article you’re trying to refer to:
Here’s what it says, condensed, for your dumb ass:
Leaks like this one are good PR that create tons of hype and can actually bump up a stock’s price. But that bump in stock prices can be an issue if BGR were to have invested in RIM, or if RIM itself were responsible for the leaks. If they’re a third party or employee leak, it still, conceptually, could one day become an SEC issue. Why? Because RIM’s stock traded at 5% higher after news on the Kickstart broke on BGR. That’s $3.5 billion more according to the above author. There’s a bit more, but I’m still assuming that given a few hours, you could get a decent understanding of that approx 6-800 word, informally written blog post. Or are you that much of an idiot?
Not everyone cares about 3G anyways, I have never had a problem with the speed of EDGE and I’m in Canada on Rogers Wireless, on top of that the more 3G devices that get released and purchased clears up more bandwidth off of EDGE, EDGE services will still be around for a long time, just like Analog/TDMA services were, their is TOO many devices out there that need the continued support for EDGE.
As for the SEC post, I’m still lol’n at that, I’m guessing half..if not more of this information is being leaked by RIM anyways in way or another…personally I think it’s geared towards viral marketing, with WES coming up..RIM is building their own hype aside from the hype the “BlackBerry” name already carries.
Their’s a play on the Research In Motion name, that is commonly used in Canada, it best describes RIM to a tee…
Rumors In Motion
On the more meaty front, RIM’s analyst day will be upon us next week. Here is a preview from Paradigm Capital’s equity research analyst:
RIM Prepares for Analyst Day
Next week, Research in Motion will host its annual Analyst Day and Wireless Enterprise Symposium. It has been our experience for many years that it is hard to attend this event and
not be more positive after the fact. The fundamentals of the company are strong and with a host of new devices expected in 2008 this year should be a particularly interesting event.
Radical form factor departures like the addition of touchscreen and a possible flip phone will be combined with the more important introduction of 3G broadband type internet browsing for the first time. The new devices will also benefit from significantly more advanced processors, which will allow noticeable improvements in graphics and the 10 fold increase in wireless data throughput (3Mbps up from 256Kbps) overnight. The new devices should be introduced officially in August and through November of this year. The event is usually very well attended and will also include many new wireless carriers and new software application partners. We continue to rate the stock very highly with a Strong Buy and a $166 target price (40x this year’s EPS).
Hopefully, one of the analysts will ask our favourite Co-CEOs if RIM has a hand in the BGR leaks. As of Friday, RIM’s press people hadn’t answered the same question when posed by The Globe and Mail.
(disclosure – I own RIM)