This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Surging Blackberry Works To Meet New UK Security Standards

NEW YORK ( TheStreet) - Blackberry (BBRY - Get Report) shares are surging today after getting a big boost from Morgan Stanley (MS - Get Report).

Blackberry was gaining 7.7% to $16.20 following this morning's "buy" recommendation from Morgan Stanley Managing Director of Technology, Ehud Gelblum. He is calling Blackberry a "niche mid range player" in today's smartphone marketplace, projecting target price for the company from $10 to $22 per share.

But, it's not all great news for Blackberry. They're also dealing with what could turn into a problem for them in the long run. It seems that their new BB 10 operating system reportedly may have failed at its first attempt to pass new, stringent security clearance in the United Kingdom.

Tens of thousands of British government workers currently use secure Blackberry devices and services part of their work. Any change would be a huge blow to Blackberry's current comeback efforts in their quest to re-invent itself in the wake of Apple (AAPL - Get Report) and Google (GOOG - Get Report) Android's recent smartphone successes.

Blackberry has confirmed reports that its new Z10 smartphone hasn't passed the first round of testing by the UK's CESG (Communications Electronics Security Group). They rate and rank devices by just how secure they are for government use. And so far, in this case - not enough.

The problem appears to be with the new OS 10's dual interface called "Balance". It's software which allows users to access separate business and personal profiles on the same device.

The Canadian phone manufacturer responded to the news by announcing that reports of their new software being rejected are "both false and misleading". They say their new operating system didn't pass the first round of tests because the British government recently changed the rules

Blackberry needs this type of clearance to stay ahead of the smartphone competition when it comes to secure wireless platforms that governments can trust. That's the feature that helped the former Research In Motion build such a strong international following - the core of their past success. Without British regulatory approval, Blackberry could face regulatory setbacks when dealing with other governments.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.75 -1.10%
BBRY $7.06 -1.50%
GOOG $693.00 0.29%
MS $27.06 -0.62%
FB $117.53 0.69%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs