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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

BlackBerry Shares Fall: Can Canadian Tech Stocks Show The Way Back Up?

Stocks in this article: AAPL BBRY CLS FB GOOG MITL SWIR

Anatomy of a turnaround

If Blackberry can find the right mix of cost-cutting and sales, shares may be positioned to move up again. Other Canadian companies that turned their operations around had two things in common.

First was cost cutting. Celestica ( CLS ) is an electronics manufacturing services (EMS) company that once made devices for BlackBerry. When that contract ended, the company drastically cut costs and found other sources of revenue.

The second was the sale of non-core businesses. Sierra Wireless ( SWIR ) sold its wireless modem unit to focus on cloud solutions. Flush with cash from the sale, the company is now a mobile to mobile pure play. As a leader in this sector, Sierra now grows revenue and generates solid margins.

And Mitel ( MITL ) was a $2.56 stock (at its yearly low) that traded recently at $8.40. The company repaid $20 million against its existing credit facility, and merged with its smaller rival, Aastra. The merger doubles revenue, with more than 54% of it coming from Europe, Middle East and Africa.

Click on the interactive chart to see stock prices over time. 

BlackBerry does not have a smaller rival to acquire, but it could acquire mobile management companies, or spin off or have a joint-venture for its devices unit to become a more nimble company.

Investors might expect BlackBerry to sell-off sharply again when the company reports on December 19. But then, this has been an uncertain quarter. BlackBerry’s ownership and future was uncertain, and sales were limited to unpopular Z10 and Q10 devices.

Now that the company has new leaders firmly committed to selling secure phones and mobile management solutions for enterprise, will the decline end?

 

(Written by Chris Lau, a Kapitall Contributor. Quarterly sales and stock price data sourced from Zacks Investment Research.) 

null
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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