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

Prepare for More BlackBerry Losses

NEW YORK ( TheStreet) -- It's beginning to appear as if the feel-good turnaround story that BlackBerry (BBRY - Get Report) investors were hoping for is not going to happen. I say "beginning" here as a courtesy, because I never really believed that any type of meaningful recovery was possible. But here's the frustrating part about this; BlackBerry has done just well enough recently to give investors false hope.

However, as in sports like football and basketball, when you've been too far behind and needing a miracle, very seldom does the hail-Mary pass or the desperation three-point shot from half court work in your favor. Unfortunately for BlackBerry, although the game is now over, the suffering won't end -- not for at least several more quarters. Accordingly, investors have some very important decisions to make. And the way I see it, any verdict that involves holding this stock is the wrong one.

There was a point when I referred to BlackBerry as the second coming of Nokia (NOK - Get Report) -- describing the nature by which a once dominant market leader was slowly becoming irrelevant. Today, given Nokia's recent moves, and the subsequent climb of Nokia's stock, BlackBerry would only be so lucky to draw this same comparison. The company's current outlook in the face of stiff competition from Apple (AAPL - Get Report) and Google (GOOG - Get Report) suggests nothing but impending losses for the foreseeable future.

Last week, upon suggesting that the company was seeking to conceal important data regarding the progress of the its subscription service business, it was also clear that management was keen on what's around the corner. The only way for BlackBerry to survive at this point is to increase its spending. There is no other way around it. The fact that the company refused to disclose unit shipment data for its smartphones serves as the perfect example.

Weak phone sales suggests weak adoption. Unfortunately for BlackBerry, the enterprise customers that were looking for ways to leverage and/or diversify into various operating system offerings no longer have a reason to include BlackBerry. As much as they would have liked to, their employees -- by virtue of their spending -- have shown no interest in the new BlackBerry 10 software.
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
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 $94.19 -1.04%
BBRY $6.76 -1.46%
GOOG $695.70 0.48%
NOK $5.76 -1.03%
MSFT $49.87 0.18%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs