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Short BlackBerry to $6, Buy Peanuts

As a result, not only have CIOs become more flexible with security policies, but the advent of BYOD, bring your own device, has changed the entire landscape of how businesses use personal devices to the extent that BYOD has become a significant influence in IT budget reductions. Not to mention, when using an iPhone or an Android device, there hasn't been a meaningful variation from the "security niche" on which BlackBerry still claims its superiority.

BlackBerry bulls will still disagree with me on this, but I just don't see how this "niche" strategy is going to work. Said another way, if Android, which is often criticized as an "open operating system," can thrive on corporate networks, what security hole is there for BlackBerry to plug? And now that Apple has introduced the iPhone 5S, which comes equipped with a fingerprint scanner, how long do you think it will take for BlackBerry's "niche market" to shrink further than it already has?

This is the same thing that happened to Palm. And it's precisely the reason why no one has stepped up to buy this company, which has been trying to sell itself for more than a year. I recently suggested that Dell (DELL) should make a bid. But after seeing how brutal BlackBerry's results are, including revenue coming in 50% below estimates, I don't believe anyone in their right mind should touch this company.

This feel-good turnaround story that investors had hope BlackBerry would become, is not going to happen. I can see the stock reaching $6 per share over the next couple of weeks. Even then, there will be doubts as to whether the valuation is too high.

With the company looking to sell itself, I once said that "BlackBerry could be had for peanuts." Well, I was at a football game this Sunday and everyone sitting in my section was eating peanuts, and there wasn't a BlackBerry phone in sight.

At the time of publication, the author was long AAPL.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Richard Saintvilus is a co-founder of StockSaints.com where he serves as CEO and editor-in-chief. After 20 years in the IT industry, including 5 years as a high school computer teacher, Saintvilus decided his second act would be as a stock analyst - bringing logic from an investor's point of view. His goal is to remove the complicated aspect of investing and present it to readers in a way that makes sense.

His background in engineering has provided him with strong analytical skills. That, along with 15 years of trading and investing, has given him the tools needed to assess equities and appraise value. Richard is a Warren Buffett disciple who bases investment decisions on the quality of a company's management, growth aspects, return on equity, and price-to-earnings ratio.

His work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets.

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