Buy Like Buffett: Are the Best Days for RIM Stock Long Over?

Some stocks have slipped slightly since the market has dropped and some stocks have plummeted rapidly. You can place Research in Motion in the latter category. Research in Motion has seen its stock tumble more than 60% over the past year. A stock that was once considered a bargain selling in the $70s now sells for $28 a share. The company has cut its earnings estimates and delayed the launch of its new smartphone product.

Are Research in Motion's best days behind them?

There was a time when consumers who wanted a smart phone were attracted to the looks and functionality of the Blackberry. The Blackberry was considered the ultimate business smart phone and consumers waited in line to buy the device. The company had a growing percentage of the smartphone market and growing revenues. Research in Motion was a favorite of growth investors and all appeared to be well with Research in Motion until new entrants came into the market.

Apple came along with its cool new iPhone that customers instantly fell in love with. The iPhone was a sensation as customers started to trade in their Blackberrys for Apple's latest offering. Even business users opted for the hipper looking device. Search engine giant Google also started to increase its presence in the smartphone market with its Android based phones. Apple and Google became bigger players in a market that all of a sudden seemed too small for Research in Motion.

Now the company is at a crossroads. Research in Motion needs a major game changer to stem the tide of its dwindling market share. Investors are abandoning ship as they do not see the catalyst that will bring this company back to the forefront of the market. Analysts have quickly downgraded the stock to sell status and are advising investors to stay away from Research in Motion.

This is an excellent example of how quickly things can change in business. The company still makes a solid product but consumers are more attracted to the applications offered by competitors. Research in Motion has gone from a great growth company with a solid balance sheet to a riskier investment proposition. Although the balance sheet is still good, the future is not as bright as it once was.

Would you still go out and buy a Blackberry phone? Do you have faith that Research in Motion can rebound?

Mark Riddix is the founder and president of New Horizons Financial Management, an independent investment advisory firm that provides personalized investing and asset management consulting. Mark is a regular contributor to Seeking Alpha and has written financial columns for Baltimore and Washington, D.C. area newspapers. Mark publishes his own financial blog, BuylikeBuffett.com and has written the book Your Financial Playbook.