This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

The Next Big Catalysts From BlackBerry

NEW YORK ( TheStreet) -- I have been long BlackBerry (BBRY - Get Report) since November. Although many hate the stock and think it's about to curl up and die, I continue to think it could have a lot more room to run in 2013. Here's why:

When someone says "X is the new Y," ignore them. Remember when everyone said that "Greece was the new Lehman?" Guess what? It wasn't. People love facile analogies to make sense of a complicated world. It gives us comfort that we feel we can predict what will happen in a world that is inherently unpredictable. But things are always different than some example in the past.

For a long time, people have written off BlackBerry because it was the "new Palm" or the "new Nokia (NOK)." It's neither.


33% of the float is held short. This is an incredibly high number. When you see a short interest this high, it usually means that there is nearly a unanimous view that a company is doomed. I don't think BlackBerry has any chance of threatening either Apple (AAPL) or Samsung, but today's earnings confirm it's not going out of business anytime soon.

They still have a highly profitable niche user base that they serve and that's going to mean many of these shorts are going to get hurt and be forced to cover. And that's why this stock can move 10% in a day, easily.

More than 50% of the users buying the new Z10 last quarter were non-BlackBerry customers previously. I was one who questioned why BlackBerry decided to give its all-touch phone (the Z10) a three to four-month lead in selling ahead of the Q10 (which is a QWERTY device). The answer I kept hearing back is that the company really felt it was important to get a meaningful number of their subscriber base on this touch platform because it feels this is the future of the company.

The fact that the phone had decent sales numbers in the quarter and that it attracted so many non-BlackBerry users to their platform in the quarter is a great sign for the company's future.


Q10 will be a home run. On the earnings call today, CEO Thorsten Heins confirmed the Q10 is in the latter stages of testing with 40 carriers globally and would start selling in April (and likely May in the U.S.). Heins teased in the call that most of the existing BlackBerry subscriber base of 76 million worldwide were QWERTY lovers.

1 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BBRY $8.93 0.00%
AAPL $124.43 0.00%
FB $82.22 0.00%
GOOG $548.00 0.00%
TSLA $188.77 0.00%

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs