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

Dear BlackBerry Shorts: You Have Been Warned (Twice)

NEW YORK (TheStreet) -- For BlackBerry (BBRY - Get Report) longs, 2014 has been great, with the stock up over 35% year-to-date. On the flip side, it has been a torturous ride for the short-sellers, and there are still plenty left. 

Of the 471.6 million share float, roughly 94.5 million shares are sold short, or 20%. With a short interest that high, it tells me there's still room to squeeze on the upside.

Couple the moderately high short interest with positive news from the company, and it's a painful disaster just waiting to happen for the bears. 

For the record, I was a BlackBerry bear in 2013. In January, I turned neutral on the stock.

Between my not-bearish-anymore piece in January, and my Don't Short BlackBerry article on Feb. 21, the stock rallied 20.11%. The stock has stormed even higher since that article in late February, up over 10%, before fading lower on Thursday.  

In my last BlackBerry article from February, What's Next for BlackBerry?, I wrote:

Market sentiment is much better than it was during its disastrous 2013 run, which was littered with product failures, incompetent management and rampant spending that could make a Kardashian look cheap. Hell, the company couldn't give itself away last fall.

With earnings set to be reported March 28, I would cautiously recommend not shorting the stock. If you have to be short, consider doing it via put options, so that your risk is defined and you know your maximum loss.

Any takeover chatter, 'profitable-sooner-than-we-originally-thought' talks from management, or a ballooning valuation for BlackBerry Messenger could send this stock into the double digits in a hurry.

Sure enough, the stock quickly rocketed higher, through $10, and found stiff resistance near $10.75. Technicians could argue that the stock is putting in a bearish double top, which is illustrated below, compliments of

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
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!
BBRY $10.40 1.50%
F $16.06 1.00%
FB $80.67 -1.50%
AAPL $130.35 -1.70%
GOOG $553.67 -0.31%


DOW 18,110.14 +72.17 0.40%
S&P 500 2,114.90 +5.98 0.28%
NASDAQ 5,055.4220 -4.8240 -0.10%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs