BlackBerry

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A decade ago, BlackBerry ( BBRY) owned the smartphone business. Back then, the idea that anyone else would sell more-Web-connected devices was unthinkable -- especially in the enterprise arena that BlackBerry dominated. Today, the only thing that's unthinkable is the notion that BBRY could regain its throne. But this comeback kid is still a Rocket Stock name worth watching this week.

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Put simply, desktop computer firms out-innovated BlackBerry when they transitioned their software and hardware into the mobile world. Clearly, the consumer trickle-down model works: sell a sexy handset to consumers, and it'll work its way into the enterprise arena, replete with administrator-level control. Now BlackBerry is working hard to court consumers again instead of IT managers. The stakes are high in the handset game -- and it's in carriers' best interest to push BlackBerry's products to avoid too much pricing power from Apple's iOS and Google's ( GOOG) Android phones.

BlackBerry's model is equally attractive. By selling service subscriptions (typically through carriers), it's able to book recurring revenues that have gone a long way in keeping the firm afloat despite lackluster handset sales. Important new offerings like the BB10 operating system and new phones could help get BBRY back on track. I doubt very much that BlackBerry will regain its throne -- but it doesn't need to in order to deliver substantial shareholder returns. With around $6 per share in cash on its balance sheet and zero debt, BBRY is better positioned than 90% of Wall Street gives them credit for.

To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

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