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.