This Day On The Street
Continue to site right-arrow
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 Exits the Abyss

Stocks in this article: BBRY AAPL GOOG MSFT NOK AMZN

NEW YORK (TheStreet) -- The day I penned "Let the Bidding begin for BlackBerry" (BBRY), 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

Select the service that is right for you!

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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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