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
TheStreet Open House

Yet Another BlackBerry Head Fake

NEW YORK ( TheStreet) -- Shares of beleaguered tech giant BlackBerry (BBRY - Get Report) closed up more than 10% on Monday after the company's board of directors made another announcement.

Those were pretty vague terms, filled with tons on "company speak," which in my opinion, means very little in terms of execution. However, what caught the Street's attention was that the board said it will also consider a possible joint venture or even selling the company outright. I don't believe investors care very much about BlackBerry's stubbornness to "accelerate BB10 deployments." It's clear that consumers are no longer interested in the devices. Selling the company, on the other hand, is certain to make headlines.

It's also been reported that the board has consulted JPMorgan Chase (JPM) as its financial adviser during its "exploration process." Essentially, after rumors swirled Friday that the company had expressed an interest to go private and shield itself from scrutiny, today's news, if true, is yet another example of how dysfunctional this company has become.

I'm not going to bore you by rehashing BlackBerry's fall from grace. It's a foregone conclusion that the company has lost the mobile device battle to Apple (AAPL) and Google (GOOG). While I'm willing to applaud the company for an obvious change of tone, including the fact that management is no longer insisting that it "knows best," I wouldn't get carried away here with the stock. Ideas about "exploring strategic alternatives" sound good but we've heard them before.

It's been over a year since BlackBerry management used these terms. In May 2012, the company said it was looking into "strategic business model alternatives." At the time, the stock had traded at around $11 per share. Two months later shares would reach bottomed at $6.56. Interestingly, in last year's announcement, the company said it had hired JPMorgan Chase along with RBC Capital to assist the company in its search for a partner to license its software. There were no takers.

Although Microsoft (MSFT) has always been an "obligatory" mention of possible suitors, the company never showed any interest. Both Facebook (FB) and Sony (SNE) were rumored to have shown some interest. But the trail went cold. This time, who will step up and make a bid? If I were to place a bet, it would be on Lenovo (LNVGY) and possibly Huawei. Both have (in the past) expressed interest in not only BlackBerry, but also Nokia (NOK).

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
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 $8.80 -6.98%
AAPL $126.37 2.53%
FB $83.20 -0.13%
GOOG $552.03 0.67%
TSLA $190.57 3.01%

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

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