Reason why - RM job cuts?
Crikey RM share price has dived 20% at 1400 hours today. Not a good sign is it.
My guess is that RM are a private company heavily dependent on public funding. With all the government budget cutbacks and abandonment of BSF in certain areas, they are bound to suffer. I believe that market sentiment dictates the company should shed jobs, and that is why the share price seems to have risen lately.
To be fair, it wasnt just RM who suffered with the demise of BSF, quite a few large IT outfits did as well, and if you were one of these companies when BSF was announced you really had no choice but to go down that route or else simply be excluded from all of the contracts and builds. You were either in or out, and if BSF continued and you were out, you could just about write off your company if education was your primary market.
Competition in the market is a good thing, look at Maniacs 'Demise of the desktop PC' thread to see what lack of choice does when competition is limited.
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