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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Buy BlackBerry While There's Blood on the Street

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

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 $10.81 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%
TSLA $203.34 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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