Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, July 27, 2012

Article Excerpt

FAIRFAX FINANCIAL HOLDINGS, $377.99, symbol FFH on Toronto, has increased its stake in Research in Motion, symbol RIM on Toronto. The company now owns 9.9% of RIM, up from 5.12%. RIM is a recommendation of our Successful Investor newsletter. Fairfax is now RIM’s largest shareholder. The company’s chairman and founder, Prem Watsa, is also on RIM’s board of directors. RIM’s revenue fell 42.7% in the latest quarter. That’s largely because customers are waiting for the company to launch updated phones that use its new BlackBerry 10 software. However, RIM has now delayed these devices to early 2013. As a result, they will miss the busy back-to-school and Christmas shopping seasons. The sales plunge and the delay are major setbacks for RIM. The stock responded appropriately and is now trading at just $7.41. Fairfax’s large interest gives Watsa more sway over RIM. He now feels that RIM shares are at or near bottom. Either way, though, he says he’s taking a three- to five-year time…