The Successful Investor Hotline – Friday, September 30, 2011

Article Excerpt

RESEARCH IN MOTION LTD., $21.36, Toronto symbol RIM, rose earlier this week on speculation that activist investor Carl Icahn is planning to buy a stake in the company. Mr. Icahn has a long history of pushing companies to make changes that help increase shareholder value. In RIM’s case, that may involve splitting the company into two separate firms. One would sell BlackBerry smartphones and email servers to corporate clients, and the other would focus on consumer products. Icahn may also push RIM to increase its earnings by licensing more of its wireless technology patents. The company’s two co-founders own 11% of the outstanding shares. That would hinder any radical changes. Still, Mr. Icahn’s involvement would draw investor attention to RIM’s value. RIM is still a buy for long-term gains. Please make sure you are logged in to your account to access these articles. Click here if you’ve lost your password. Research in Motion was recently covered in the August 2011 issue…