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

BlackBerry Exits the Abyss

NEW YORK (TheStreet) -- The day I penned "Let the Bidding begin for BlackBerry" (BBRY - Get Report), the shares closed at $7.73 a share. I recommended not selling shares because of my belief a price under $8 was attractive relative to the risk. By the time I followed up with "Yes, BlackBerry Is a Buy" shares were trading near $6, and it was obvious not everyone agreed with my thesis.

Just as the entire market was ready to confirm Apple (AAPL) Google (GOOG), Microsoft (MSFT) and Nokia (NOK) sent the Canadian smartphone maker deep within Wall Street's event horizon for good, the impossible happened, John Chen, the new Chief Berry showed investors a way out.

Chen is ditching the losing handset division and concentrate the company's efforts on its strengths, namely secure enterprise software and solutions. On Dec. 20, the day Chen spoke about his vision for the company the stock increased from a previous close of $6.25 to an astonishing $7.22. While the market has no confidence in BlackBerry's ability to produce handsets profitably, Wall Street understands the income potential if the company adopts a singular focus on enterprise services.

Apple and Google aren't ignoring the enterprise segment and have made limited progress through a client concept known as Bring Your Own Device (BYOD), however in a recent rarity for BlackBerry, the company wisely enriched the server software by allowing iPhones and Android devices as clients. By including Apple and Google based clients, BlackBerry is better able to maintain its dominant enterprise solutions position.

The company cast aside development and manufacturing of unprofitable handsets, but not handset sales. There's no argument BlackBerry fell into consumer irrelevance in North America, but in other parts of the world including India and Indonesia, BlackBerry is a tremendously popular brand.

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 $6.86 0.00%
AAPL $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%
TSLA $232.32 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs