Research In Motion Ltd (BBRY): This Company Needs to Be More Innovative

Conclusion

BlackBerry reported what I expected and others did not. The Z10 was not received by customers as it was expected, even though the company spend huge piles of cash to develop its BlackBerry OS. As a result, the stock lost 27% after the earnings release. Although the company plans to increase its advertisement of the Z10 through the rest of FY2014, I do not expect sales to increase. I think BlackBerry is not what it was once.

With that being said, I also expect Nokia to do poorly. Neither of the companies have brought innovation, and as a result, they have migrated to other companies such as Samsung and Apple.

I believe Apple offers the best investment prospect for investors who want to grab a piece of the telecommunications industry. The company trades at an appealing price-to-earnings ratio, its sales and net income are increasing as well as the number of devices shipped. Further, the company offers a nice dividend and it has initiated a massive share repurchase program. For these reasons, I recommend going long Apple, and avoid BlackBerry and Nokia.

Robinson Roacho has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

The article This Company Needs to Be More Innovative originally appeared on Fool.com and is written by Robinson Roacho.

Robinson is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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