This Day On The Street
Continue to site
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

Rumors of BlackBerry's Death Were Greatly Exaggerated

NEW YORK (TheStreet) -- How can a company report its worst quarter with losses of about $4.4 billion and still see its shares rocket 15% higher? John Chen, that's how.

The ink on BlackBerry's (BBRY - Get Report) interim CEO John Chen's updated business card may not have dried but that hasn't prevented the newest chief from asserting control. More than one c-suite office displays a new name on the desk, and even a board member has left the building.

Over half the revenue since the previous year's same quarter is also gone. Total revenue for the third quarter dropped 56% to $1.20 billion. Subscribers are churning at a rate of 12% to 13% a quarter and the company lost $8.37 a share.

Chen decided BlackBerry is no longer a handset hardware maker and will focus on services. Actually, Chen didn't decide, the above losses indicate consumers did. Chen receives credit as the first BlackBerry CEO smart enough to recognize the obvious.

Another distinction between Chen and former CEO Thorsten Heins is Chen appears ready to take the pieces and rebuild the Ontario Tech company into a leader again.

Attempting to find a buyer for BlackBerry was probably the right choice for the company at the time. Heins was likely the best person to liquidate the company, and his pay package certainly suggested he was a hired gun to make the sale. But it was the final example of BlackBerry taking too long to execute.

OEM supplier Foxconn will replace BlackBerry's in-house production of hardware. If you don't know Foxconn, the company also manufactures parts and/or products for Apple (AAPL), Amazon (AMZN), Nokia (NOK), Microsoft (MSFT) and other well-known names.

BBRY Book Value (Per Share) Chart

Friday's revelations and market reaction supports and vindicates why I think and wrote that BlackBerry is a buy. Eric Jackson wrote an outstanding piece in Real Money. (If you don't have a subscription, sign up for a free trial. Not only do I use the information for my own trading, I post real-time trade ideas with exact entry and exit prices.)

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BBRY $6.87 -2.70%
AAPL $94.93 1.40%
FB $117.86 -0.60%
GOOG $694.39 -0.55%
TSLA $234.71 -2.90%


Chart of I:DJI
DOW 17,729.16 -162.00 -0.91%
S&P 500 2,059.31 -22.12 -1.06%
NASDAQ 4,760.8110 -56.7830 -1.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs