Today, is Pat Quinn’s 70th birthday. He is a famous Toronto Maple Leafs coach and player. While his playing career leaves a lot to be desired (2 goals in 99 games) his coaching abilities stand out. Averaging over 40 wins a season with his stint in Toronto and making it to the playoffs all but 2 times.
January 30th, 2013 is a big day for Research in Motion. It concluded the long awaited release of their new operating system and their new phones. This has been a long time in coming for many Blackberry fans and is a nice relief from only a year ago when ‘RIM is dead” was every headline. In honor of this occasion I figured I would do a recap of the history of RIM and show you how we got to now.
-1984 – Two engineering students – Mike Lazaridis (University of Waterloo) and Douglas Fregin (University of Windsor) – co-found Research in Motion.
– 1988 – The company becomes the first wireless data technology developer in North America. The technology is mainly used for business communications, such as processing credit-card sales.
– 1990 – RIM introduces the DigiSync™ Film KeyKode™ Reader
– 1991 – RIM introduces the first Mobitex protocol converter (MPC)
– 1992 – The company had been focusing on working with pagers, but the focus shifted to two-way wireless communication. Jim Balsillie joins RIM, putting $250,000 of his own money into the company. I was born 🙂
– 1996 – RIM introduces its first wireless handheld, the Interactive Pager.
– 1997 – RIM is listed on the Toronto Stock Exchange as a publicly traded company – and raises more than $115 million from investors. – 1998 – RIM introduces its first BlackBerry, a wireless handheld computer. The RIM 950 2 way pager is released this year as well.
– 1999 – RIM is listed on the NASDAQ
– 2000 – RIM 957 Wireless Handheld is released along with the start of Java Development for Blackberry Phones
– 2001 – First wireless handheld based entirely on the Java™ 2
Micro Edition (J2ME™) platform
– 2002 – BlackBerry 5810, BlackBerry 6710, BlackBerry 6720, BlackBerry 6510, BlackBerry 6750 all released in 2002. Some were GSM and CDMA.
– 2003 – RIM added to the NASDAQ – 100 🙂 , BlackBerry 6210, BlackBerry 6220, BlackBerry 6230, the BES server comes onboard and brings with it a new state of security. BlackBerry 7230, BlackBerry 7210, BlackBerry 7280 which are the first Blackberry phones with a colour screen. The BlackBerry 7730 is also released.
– 2004 – RIM turns 20 (Happy Birthday!), Blackberry reaches 2 million subscribers globally. BlackBerry 7520, BlackBerry 7750, BlackBerry 7100 Series, BlackBerry 7290 are all released this year. SureType is released as well and viewed as a huge leap ahead in small keyboard devices.
– 2005 – RIM surpasses the 5 million subscribers milestone, BlackBerry 8700, BlackBerry 7130 and Sony Ericsson P910i Smartphone with BlackBerry Connect.
– 2006 – RIM acquired Ascendent Systems, BlackBerry 8707 released this year. CESG approved BlackBerry for use by government workers handling restricted data in
– 2007 – RIM cracks the 10 million subscriber mark. After RIM announced a deal to distribute its phones in China its stock rises. It is now the most valuable company in Canada with a value of 68 billion dollars. The stock is up 150% since the beginning of the year. The 8800 is also released this year along with a number of other phones. The first Blackberry store is opened in Detroit!!! By the end of the year it is at 12 million subscribers!
– 2008 – The Bold 9000 is released!! Blackberry Storm is released which is RIM first all touch screen phone. OS 4 is the latest OS to come from RIM. The downfall has started.
– 2009 – App World is created for Blackberry devices. RIM is declared the fastest growing company in the world! Bold 9700 is released which is one the best selling phones in Canada, the Storm 2 which improves upon the original device, the tour 2 is release along with the Blackberry ‘striker’ or the Pearl. OS 5 is released.
– 2010 – Bold 9780, Style 9760 (RIM latest flip phone), Curve 3G 9330, Torch 9800. Most importantly is that RIM purchases QNX and the transition to QNX starts. RIM also buys TAT which brings to Blackberry Cascades. I also purchased my first Blackberry device in November of 2010 which was the 9800. OS 6 is released this year.
– 2011 – RIM also enters into the tablet market with the Blackberry Playbook which is met with lukewarm criticism. The beautiful Bold 9900 comes out in August which is the cream of the crop for BBOS. RIM also releases BBOS 7.0 and eventually 7.1. Other notable phones for this year are the Bold 9790, Torch 9810, Torch 9860, Porsche Design P’9981. I purchase my first Blackberry Playbook in September. 2,000 RIM employees lose their job in company restructuring.
– 2012 – RIM doesn’t release any new phones of merit in 2012 other then a couple curve models. The Playbook gets a speed boost with a 1.5 Ghz processor and 4G LTE being thrown into the mix. I purchase a Bold 9790 to replace my Torch 9800. Blackberry 10 gets delayed until Q1 2013 which is a last straw for many investors. Mike L. and Jim B. are removed as Co-CEO’s of the board and are replaced by Thorsten Heinz. RIM reaches a low of 6 dollar a stock on the TSX. In the latter months it also surges on good news about its new operating system.
– 2013 – RIM stock is up 170% since it hit its 52 week low. Hitting 18+ dollars a share in January. RIM renames its app store to Blackberry world and changes the name of its annual conference to Blackberry Live. Blackberry announced it will have 6 phones in 2013 of which 2 will be announced right away. RIM received a BUY standing from analyst Peter Misariek. RIM’s first 2 phones are leaked which the full touch being leaked more the the qwerty phone (see below)
That brings us to January 30th, 2013. Where will RIM go from here? It will be an interesting road and as a Blackberry lover and investor I’m excited to take it.
The people of Greece and Spain are suffering mightily with massive unemployment and debt. Unemployment in Spain has gotten so large that it no claimed 25%+ of people who could be working. The numbers are close to the same in Greece which was the first European Zone country to fall under the weight of its own debt. There is a light at the end of the tunnel for these people tho. Thunder Bay and the region are set to explode with work available for anyone that wants it. The mining boom is coming to the region and the workforce simply isn’t in place to be able to fill these jobs. That is why we need new immigrants to come to Canada and more specifically Thunder Bay to fill these jobs. Here are some of the highlights the boom could bring us:
– 1.7 Billion government investment could bring in a return of 16-17 billion
– 6000 new homes needed in Thunder Bay
– 40,000-45,000 jobs could be created in relation to this boom
– 8-10 new mines could be opening up between 2013-2020
– Several existing mines have already expanded their operations and added life to their timelines.
First, I’ll make it clear that I’m the kind of person who likes to be involved, help make decisions and in some cases make the decisions. When I decide to sell I will be keeping at least one stock so that I can feel I can help make decisions (even tho I really have 0 say). So lets get into it.
Buy Low, Sell High – The whole point of buying stocks is to eventually make money from the decision (at least you hope). I purchased RIM stock at 2 different times; once was when the stock was at $11.68 and the other at $8.60. Both of these decisions were influenced by a number of different factors but in the end came back to when I believed I could make the most money.
At $11.68, RIM had reached it residual book value (value of the company) which is typically an area where a stock will flatten out. RIM was also close to releasing its new operating system BB10 which would likely send the stock higher if simply for the fact they had new models on the show floor. The company was also in a position where it could be taken over by a takeover and the offer would have been higher then the stock purchase price. It seemed that it would have been a perfect opportunity for me to sit on my stocks for a couple months and let it rise and then sell. It didn’t turn out that way.
I purchased in the summer months before the drop occurred. This drop was forced on the stock by the delay of BB10 and the announcement that the company was going through a 1 Billion dollar cost cutting to reduce the size of the company. Investors knew that in the long run this would be good for the company but in the short term it provided extra costs in severance (one time cost).
I purchased again in November at $8.60 when it started to make a rally after bottoming out at $6.00 a share. There was much more optimism within the company and the Blackberry community as it seemed their was a media shift. Only months before the media and tech blogs had been calling for RIM to be chopped up and sold for scraps but now they were saying their seemed to be a light at the end of the tunnel. There were also rumors on launch dates for #BB10 along with a stronger RIM showing in quarterly numbers. One of the biggest indications that RIM was going to survive to Blackberry10 was the growth of its subscribers to 80 million (Q4 2013).
One has to remember that the market is fueled by speculation along with facts/trends and personal preference. RIM may not have gone down so much in stock price had it not been for the consistently bad press that it seemed to be getting from everyone. RIM news was emphasized and was plastered everywhere when it was bad which fueled investors to think that the RIM stock and company was in worse position then it was. There were different events that merited the downgrade of RIM stock, or a sell off by investors but in many cases there wasn’t. The BB10 delay, 485 million inventory purchase of playbooks, 5,000 job cuts and their added costs were all reasons to move the stock downwards.
As of January 23, 2013 at closing the stock is up on the TSX to $17.80 a share. That means that my $8.60 shares are pulling in a profit of $9.20 and my $11.86 almost another $6 per. While its nice to see the price of the stock rise there needs to be a point where you sell. Take your money and either reinvest it again or put it away for something nice. My preference will be to sell in the $20-25 dollar range which will make me a nice profit of around $400-$600 dollars. That money will be reinvested into RIM to control more stocks after I take some time to step back and look at my list of why I buy a stock.
Know the product! – When you purchase a companies stock you should have a good idea of what the company sells, its popularity and other things you feel are important. When I got into RIM I had an idea of what was coming down the pipeline based on my research through tech websites like crackberry.com, N4bb.com and more. RIM is a company highly integrated with governments and business people alike. These 2 segments of the population have a couple things in common which are money, money and lots of employees. If RIM gets a contract with a fortune 500 company or a government department that could easily be 1,000-5,000 new phones headed out the door. RIM was in the later stages of a transition when I got into being an investor which gave me the opportunity to purchase stocks while they were cheap but also be close enough to the launch of the new operating system to make money. Even if Blackberry 10 isn’t as successful as hoped there will be 11,12 and possibly 13 before changes are made.
Paying attention to the conferences and investor events that the company held and watching the quarterly reports are also important. How the presenters act could give you incite into how they feel about the company, about the product and the morale in the company. If there is some hesitation in the presentation then that might leave you with some red flags. The most important thing though when watching these presentations is: What does it do for you? Your a consumer as well as a potential buyer, are you interested by what you are seeing or is it putting you to sleep. What kind of emotions does it draw from you?
Ask Questions: Blackberry has a great community in which to ask all the stupid questions you could ever want. Forums, social media and friends all can give you important information about the company, its history, present and future. Lots of people will have little tid bits about the company that can help you make a decision on if to buy or not. Twitter is likely the best place if you want to make your decision on whether to buy RIM stocks or not. Chris Umiastowski has to be one of the smartest investors I have come across and he is a great place for information on RIM. He is an expert on the company and isn’t afraid to come out and say what RIM needs to do to be successful. Asking questions on the financial viability of the company, any rumors of mass hiring or layoffs, acquisitions and where a company stands in the mobile space is important.
Be Prepared: The market is a crazy place and while in good economic times it should inch upwards in downturns it can provide for a crazy rollercoaster. Setting out sell points and buy points are important for making sure you come out of this ahead of where you started. #1) Don’t be greedy, if your making a sizeable profit it might be time to look at selling. It could just as easily drop completely as it went up, having a point where you sell is important. #2) If you really believe the company and its stock can improve then you might want to consider adding more to your portfolio when the stock reaches a certain point if it drops. Watch what the market is doing and watch your stock! Even if its a long term investment you should pay attention to where your money is.
A quick recap: Buy low and sell high, know the companies product, ask questions and be prepared. Its your money, you dont just wanna jump in feet first without checking out what its all about.
I am not a financial advisor, I have no training in the field. These are just some of the reasons that I purchased RIM stocks.
The post was in response to the #opThunderbird and anonymous claims that Thunder Bay Police(+ police in general) aren’t doing enough to protect Aboriginal women and aboriginal people in general. This is why it seems that the people is heavy with Aboriginal influence. In staying on topic to avoid confusing the reader. Obviously, I should have made this more clear in the previous post. The blog was not meant to be an attack on Aboriginal people, Metis, Inuit or anyone of Aboriginal descent. I feel that making a decision based on a persons skin colour, beliefs, ethnicity is something that is not needed in our society. I hope that as generations pass where these actions were considered ok, there will be a reduction in the number of cases of racism.
The post was meant to show that Thunder Bay police cannot adversely affect the problem on their own. There needs to be a collection of agencies and levels of government to deal with the addictions, social and education issues facing First Nations people. Hopefully we can see this happen and in turn we see a massive reduction in the number of missing and murdered Aboriginal women. Like a commenter said that social and addictions issues are not strictly an Aboriginal issue and are facing other ethnicity as well. Hopefully we can start to help the people struggling with addictions issues and provide a brighter future for the children of today and tomorrow.
Hopefully this helps to clear up some confusion with the previous post.
Today, It was announced that Idlenomore would be having a marching protest from Dennis Franklin Cromarty School to City Hall. They announced that the protest will start at 4:15 pm and will move its way through the major arteries. Below is a list of the possible routes that they could take to get to their destination. This post is a public service announcement and to help prevent delay’s for average motorists. It is also to help protect the protesters by warning drivers and residents ahead of time. Please share if you feel the need to do so.
As somebody living or working in the area. Your best route will be to head to May street or Simpson street if coming from City Hall or the VictoriaVille Parkade. Expect delays if you attempt to go against the direction the protestors are coming and expect heavier traffic.
Northwestern Ontario, a large and majestic parcel of Canada with more moose and deer then people. This area is considered to be around the same size as France but is only home to around 400,000 people of which 110,000 are living in Thunder Bay alone. Tbaytel is the locally owned and operated telephone company which offers mobile, internet, digital TV and phone services to Northwestern Ontario. It has been serving Thunder Bay for over 100 years and was created because the city council at the time didn’t like Bell Mobility. Tbaytel along with northwestern Ontario is in an interesting phase and a smart decision could help to protect its future as Canada’s Largest municipally owned telephone company.
Northwestern Ontario is just beginning a new expansion with mines and the potential for a population expansion but it still is dealing with the same issues. Northwestern Ontario is large and doesn’t have the population to warrant expansion for many larger companies. Tbaytel paid Rogers 46 million dollars to take all of their customers with a 807 area code because Rogers didn’t want to spend a dime in the area. As I stated in my previous blog post about Tbaytel expansion idea, making its way to the south could provide both economic and opportunistic benefits for the company. Duluth is roughly the same size as Thunder Bay but its surrounding areas are home to over 350,000 people. Tbaytel might have a hard time expanding into the United States if it doesn’t have some form of ownership by an American company/city. For that reason I would try to interest Duluth into purchasing a portion of the ownership of Tbaytel. A 30% stake in the company might be enough to give them a helping hand to expand south but also pay for upgrades in equipment elsewhere.
When Bell and Virgin Mobile moved into Thunder Bay they brought with them 4G LTE speeds that Tbaytel can’t hope to compete with at this time. They also brought it to Kenora which is the other large population base in Northwestern Ontario. For the average consumer who might not know a lot about technology more speed could be a major selling point. Tbaytel might be able to combat this with the sale to Duluth if they were willing to invest into the plan. I have heard that Tbaytel is estimated to be worth 300 million (which I think is a little high) but if we were to sell 30% we could gain 90 million in cash. This would be more then enough to provide the cell service to Duluth and back but also upgrade to 4G LTE or even 5G during the process. So what could be in it for Duluth to make it worth their time and money to invest in a Canadian company owned by another city?
Thunder Bay has a fairly sweet deal when it comes to Tbaytel and its dividends. It employs over 400 people company wide with a majority living in Thunder Bay. It provides the City of Thunder Bay a minimum of 17 million dollars which reduces the tax rate by 12% and in cases where it exceeds expectations it provides more to the city. Last year alone it provided 17 million + 3.25 million to the city in performance dividends. On top of that the city also took cash to help pay for projects like a new event center, a new library and a expansion to the waterfront. With a stake in the company Duluth could receive a payment (based on ownership) along with a special performance revenue. They could also gain a seat at the decision table along with economic gains by having Tbaytel employ people in and around Duluth.
Thunder Bay would seem to get the short end of this stick but with the added population living under its coverage its likely that the increase could offset losses. The addition of Duluth and the shore to its possibly subscriber base doubles the potential with a massive reduction in operating costs for the company. Even if 50% of the population of Duluth signed on to be a Tbaytel customer that would be another 46,500 people signed on. A common package would likely be in the range of 50-60 bucks a month meaning Tbaytel would be bringing in 2.325/2.79 million more a month or 27,900,000/33,480,000 a year. Tbaytel made 168 million total revenue last year, by adding the number above we could increase the revenue by 6-8%. The deal signed with Rogers also has benefits of traveling into the US with other US carriers . By continuing these partnerships they could provide the basic coverage in the city but also be able to have coverage elsewhere provided by AT&T, Verizon etc….
Tbaytel is facing the issue of having more competition come into an area which isn’t getting any smaller. A population which is aging and seeing more people reduce spending but most drastic is a reducing population. Thunder Bay was expected to double in population to 250,000 people by 2012 when Port Arthur and Fort William merged. It hasn’t come even slightly close to fruition and the opposite seems to be occurring with Thunder Bay 1 of only 2 cities in Canada to lose population in the 2011 census. Either we will see more areas where gaps in coverage occur, technology falls behind, increase in prices or a mixture of all 3. Tbaytel is already spending more on towers, infrastructure etc but is starting to be left behind by the larger companies who have more capital to draw on.
So what do you think? Would this be something of interest to Thunder Bay city council or its citizens? Do you think Duluth would even have the slightest interest in a business venture like this? Would US laws like the patriot act discourage Canadian companies to get involved in the US. What are your thoughts on this idea? Comment in the section below…..