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A decade ago,
BBRY) owned the smartphone business. Back then, the idea that anyone else would sell more-Web-connected devices was unthinkable -- especially in the enterprise arena that BlackBerry dominated. Today, the only thing that's unthinkable is the notion that BBRY could regain its throne. But this comeback kid is still a Rocket Stock name worth watching this week.
Put simply, desktop computer firms out-innovated BlackBerry when they transitioned their software and hardware into the mobile world. Clearly, the consumer trickle-down model works: sell a sexy handset to consumers, and it'll work its way into the enterprise arena, replete with administrator-level control. Now BlackBerry is working hard to court consumers again instead of IT managers. The stakes are high in the handset game -- and it's in carriers' best interest to push BlackBerry's products to avoid too much pricing power from Apple's iOS and
GOOG) Android phones.
BlackBerry's model is equally attractive. By selling service subscriptions (typically through carriers), it's able to book recurring revenues that have gone a long way in keeping the firm afloat despite lackluster handset sales. Important new offerings like the BB10 operating system and new phones could help get BBRY back on track. I doubt very much that BlackBerry will regain its throne -- but it doesn't need to in order to deliver substantial shareholder returns. With around $6 per share in cash on its balance sheet and zero debt, BBRY is better positioned than 90% of Wall Street gives them credit for.
To see all of this week's Rocket Stocks in action, check out
the Rocket Stocks portfolio at Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.