BlackBerry Goes Private: 3 Other Tech Stocks To Consider

Chris Lau, Kapitall: BlackBerry goes private, after confusing the market and smartphone users alike.

BlackBerry ( BBRY ) shocked the market last week by issuing an earnings warning, announcing staff cuts, and reporting a nearly billion dollar quarterly loss. The company had seemed to be positioning itself as a takeover target.

And then on Monday, Fairfax Financial Holdings moved in. On Monday, the Fairfax consortium initiated a move to take BlackBerry private. Fairfax offered $4.7 billion to buy the company. Excluding the $2.6 billion in cash held by the company, this values the BlackBerry enterprise at just $2 billion.

Recent BlackBerry price

Click on the interactive charts below to see data over time. 

<p>Your browser does not support iframes.</p>

With the Canadian tech icon departing the scene, what other technology stocks can investors consider from our neighbor to the north?

CAE Inc. (CAE)

CAE makes flight simulation equipment and is best known for building solutions for the flight industry. Valued at a forward P/E of 15, CAE earned $0.18 per share last quarter on revenue of $530.4 million. CAE has a healthy backlog, which could support future operating income. The company’s backlog was $3.7 billion in its fiscal first quarter, up from $3.5 billion a year earlier.

CAE is growing sales in its healthcare division, and the company is establishing a training center for a hospital group in Brazil.

<p>Your browser does not support iframes.</p>

Mitel Networks (MITL)

Mitel shares are up sharply, nearly double from the start of 2013. The company is generating healthy gross margins and sales. Gross margin was 56.6% in its fiscal first quarter, but the company expects the current quarter (ending October 31, 2013) to be between 57% to 58%. 

<p>Your browser does not support iframes.</p>

Descartes Systems Group (DSGX)

Descartes is range-bound, since breaking out above $10 earlier this year. The software provider to logistics-intensive businesses continues to report stronger sales. Last quarter, Descartes generated revenue of $38.2 million, up 25% from the previous year. Gross margin for the year-to-date was 67%. And the company continues to grow its software as a service strategy effectively.

<p>Your browser does not support iframes.</p>

 

Written by Chris Lau, Kapitall writer.  Disclosure: Author has a long position in BlackBerry. All data sourced from Zacks Investment Research. 

null

If you liked this article you might like

Johnson & Johnson, STMicroelectronics: 'Mad Money' Lightning Round

Johnson & Johnson, STMicroelectronics: 'Mad Money' Lightning Round

It's a Flash Sale!: Cramer's 'Mad Money' Recap (Wednesday 1/31/18)

It's a Flash Sale!: Cramer's 'Mad Money' Recap (Wednesday 1/31/18)

Thought You'd Never Buy Another BlackBerry? Think Again

Thought You'd Never Buy Another BlackBerry? Think Again

Pandora Sells Off; Unemployment Numbers Aren't as Rosy as They Seem -- ICYMI

Pandora Sells Off; Unemployment Numbers Aren't as Rosy as They Seem -- ICYMI

Closing Bell: LIVE MARKETS BLOG

Closing Bell: LIVE MARKETS BLOG