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BlackBerry in Value Territory?

Stocks in this article: BBRY FRFHF

NEW YORK (TheStreet) -- I gave up my BlackBerry more than a year ago, and while there are some things I miss about it, as compared to my android device, I'm not sure it's enough to go back. Evidently, that's not uncommon sentiment judging by the downward trajectory of BlackBerry's (BBRY) revenue and bottom line.

Friday, the company reported a 56% decline in third quarter revenue, and both revenue and the net loss for the quarter were well below expectations. But in classic fashion, the stock rebounded after the release, and finished the day up more than 15%; a reaction to the announcement of a five-year deal smartphone production outsourcing deal with Foxconn. The hope is that getting out of the hardware manufacturing business will help cut costs and the messy inventory situations the company has gotten into.

BBRY Chart
BBRY data by YCharts

While this company has a long way to go to once again become relevant and profitable, it has also become an interesting situation from a value perspective. Despite the terrible operating performance in recent years, the company has maintained a fairly solid balance sheet, and is once again showing up on some of my deep-value oriented stock screens.

BlackBerry ended the third quarter with nearly $3.1 billion, or just under $6 per share in cash and short-term investments. Now, granted that the company did burn through about $400 million in cash last quarter, excluding the $1 billion private placement deal in convertible debentures the company did with Fairfax Financial (FRFHF: OTC BB) and others, so this cash hoard needs to be both monitored and taken with a grain of salt. But, that level of cash certainly does get my attention, especially with the stock trading in the mid-$7 range.

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