NEW YORK ( TheStreet) -- As shares of BlackBerry ( BBRY) traded at almost $14 per share on July 5, I warned investors to brace for more losses. It was clear that although the company had made some meaningful progress toward profitability, the recurring theme of one step forward followed by two bloodbaths was still at play.Last Friday, with the company's preannouncement of fiscal second-quarter results, due Friday, Sept. 27, things were of the "bloodbath category." But unlike previous dances, I don't believe there will be any steps forward, given the worse-than-expected state of the company. Seeing no progress from its fight against Apple ( AAPL) and Google ( GOOG) in device sales, BlackBerry essentially said "to hell with the consumer market" and will instead turn its attention to the enterprise. SSNLF) is tough." Looking back, it was obvious Nordberg was hinting at what was made official last Friday. We just didn't know to what extent. BlackBerry, or "the niche company," has now created the word "prosumers" to describe its target market. With no official definition of the term, we can safely assume it means "professional consumers," which is another way to describe the corporate enterprise.
As a result, not only have CIOs become more flexible with security policies, but the advent of BYOD, bring your own device, has changed the entire landscape of how businesses use personal devices to the extent that BYOD has become a significant influence in IT budget reductions. Not to mention, when using an iPhone or an Android device, there hasn't been a meaningful variation from the "security niche" on which BlackBerry still claims its superiority. BlackBerry bulls will still disagree with me on this, but I just don't see how this "niche" strategy is going to work. Said another way, if Android, which is often criticized as an "open operating system," can thrive on corporate networks, what security hole is there for BlackBerry to plug? And now that Apple has introduced the iPhone 5S, which comes equipped with a fingerprint scanner, how long do you think it will take for BlackBerry's "niche market" to shrink further than it already has? DELL) should make a bid. But after seeing how brutal BlackBerry's results are, including revenue coming in 50% below estimates, I don't believe anyone in their right mind should touch this company. This feel-good turnaround story that investors had hope BlackBerry would become, is not going to happen. I can see the stock reaching $6 per share over the next couple of weeks. Even then, there will be doubts as to whether the valuation is too high. With the company looking to sell itself, I once said that "BlackBerry could be had for peanuts." Well, I was at a football game this Sunday and everyone sitting in my section was eating peanuts, and there wasn't a BlackBerry phone in sight. At the time of publication, the author was long AAPL. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.