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!

Buy BlackBerry While There's Blood on the Street

Stocks in this article: BBRY GOOG AAPL MSFT

If you're attempting to beat the market, you can't become one with the market. The investing mob tends to buy high and sell low. This phenomenon of entering and exiting at exactly the wrong time is easily illustrated by the heavy volume associated with tops and bottoms.

Your best bet in avoiding emotional decisions is to have a plan in place before making a buy.

A written plan describes your entry and exit points to avoid the cost of knee-jerk reactions. You need two exit amounts, one for taking profits and one for stopping out in case moves the other way. Create your plan before you enter. That way your thoughts aren't clouded during the heat of the battle, or what's also known as the fog of war.

Another protection measure in front of earnings is to sell a call against some of your shares or buy a protective put. I prefer to sell calls because option premium is especially high before an earnings release. The premium received acts as a buffer if the shares fall and will often result in a profitable trade regardless of the results.

That said, Google (GOOG), Apple (AAPL) and Microsoft (MSFT) have reduced BlackBerry's handset market share below 4%. While it's true the ecosystem is all but dead, the market has fully discounted BlackBerry's handset death for some time.

If the environment changes, shareholders stand to win; otherwise, anticipate Microsoft's recent and renewed vigor into the mobile space to make things more, not less challenging. It doesn't matter to me, and it shouldn't to you because enterprise solutions are profitable and BlackBerry maintains its solid leadership in that space. Beyond the current operational turnaround plan, the company has other options open and available.

The company's war chest, stuffed with $2.7 billion, enables the company to make strategic purchases and have the wherewithal to avoid a scorched-earth attitude to keep the wheels from falling off. At $8, over half the value of a share is cash alone.

For a buy and hold investor willing to wait for a return to profitability, BlackBerry is one of the few technology giants that can reasonably double in the next 24 months.

At the time of publication, Weinstein had no positions in securities mentioned.

Follow @RobertWeinstein

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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