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

BlackBerry Begs for More Time

NEW YORK ( TheStreet) -- I was recently accused of being too hard on beleaguered tech giant BlackBerry (BBRY - Get Report) following the company's disastrous first-quarter earnings results, which sent its stock plummeting more than 27%.

If the results weren't bad enough, management also figured it was a good idea to change how the company reports important performance details such as unit shipments and subscriber totals for its high-margin services business.

So, with declining performance coinciding with management's new stance on disclosure and transparency, investors need to ask a very important question, what is there left in BlackBerry?
[Read: <a target="blank" data-add-tracking="true" href=""><em>BlackBerry Should Fire Thorsten Heins</em></a>]

In fact, the only good to have come out of BlackBerry's recent earnings results is that Wall Street has become more realistic about this company's recovery potential and the pace at which it will happen.

BlackBerry has its own pace, however. On Tuesday, at the company's annual shareholder meeting, the company's CEO, Thorsten Heins, asked investors for more time -- suggesting that the company is in the "second phase" of a three-stage plan to restore BlackBerry back to health. He said that the first phase involved cutting costs and streamlining operations. The second phase is what the company is now in, which includes rolling out BlackBerry 10 and pushing out new devices.

In the same breath, though, Heins admitted that he underestimated the competition and how fierce was the smartphone market. I can't say that investors will be inspired to learn that the company's CEO grossly miscalculated the strength of the leaders of its core market , namely Apple (AAPL) and Google (GOOG).
[Read: <a target="blank" data-add-tracking="true" href=""><em>Apple Estimates Slashed on iPhone Worries</em></a>]

Along similar lines, it was also clear that BlackBerry didn't fully appreciate the challenges involved in getting carriers like AT&T (T) and Verizon (VZ) onboard with the company's strategy. BlackBerry believed "If you build it, they will sell." The carriers, meanwhile, only had an interest in selling what already sells well. These were Apple and Android devices.

Remarkably, though, Heins vehemently defended the notion that the launch of BB10 was a "disaster," as an investor suggested during the question and answer session of the meeting. Heins responded saying that "there were many lessons learned," including fighting to get carriers to give shelf space to BB10 devices, but he was adamant about the launch not being a disaster.
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
BBRY $7.29 0.00%
AAPL $109.50 0.00%
FB $92.47 0.00%
GOOG $639.16 0.00%
YHOO $32.37 0.00%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs