Research In Motion Ltd. stock dipped into single-digit territory for the first time in more than eight years during post-market trading Tuesday.
The embattled BlackBerry maker saw its stock plunge as much as 15 per cent after coming off a brief trading halt during which the company disclosed its latest bad news. RIM said it will post an operating loss for the first quarter, with results reflecting “lower volumes and highly competitive pricing dynamics in the marketplace.” RIM also said it has engaged JPMorgan Securities and RBC Dominion Securities to assist the company and its board “in reviewing RIM’s business and financial performance.”
Trading of U.S.-listed RIM shares were immediately pounded upon when trading resumed at 4:35 p.m. (ET), dipping briefly below $10 (U.S.). By 5:30 p.m., they were down 8 per cent at $10.32, off their lows but still setting up for a major dip on Wednesday morning to their lowest levels since 2003. They closed regular trading at $11.23, up 23 cents or 2.09 per cent.
There won’t be much in the way of U.S. and Canadian economic reports for investors to absorb Wednesday, but the European debt crisis will remain front and centre.
In the post market Tuesday, the European Central Bank rejected Spain’s proposed plan to recapitalize Bankia SA with government bonds, according to the Financial Times.
Spain had planned to put 19-billion euros, or $24-billion (U.S.), in sovereign bonds into Bankia’s parent company, which would then get swapped out for cash at the ECB’s three-month refinancing window, the FT said. The ECB reportedly rejected the plan because it violated E.U. rules against central bank funding of governments.