BlackBerry and Darden Are on the Wrong Path
Posted at 6:42 a.m. EDT on Wednesday, June 24, 2015
Sometimes, it would seem, the best thing to do is to say nothing and let the numbers speak for themselves. That's how many people felt yesterday, I believe, when they saw the initial positive reactions to the quarters of two very high profile companies, BlackBerry (BBRY) and Darden (DRI), and then the sickening slide down as the rest of the day progressed.
That's right; when Blackberry first reported, the stock, in pre-opening, jumped about 10% from its $9.20 close the day before. But by the time regular trading started, it had given up that whole gain and opened pretty much unchanged and then closed the day at $8.81 -- pretty much near the $8.78 low, a huge swing from top to bottom.
However, in some ways it was a lot less painful than the Darden trajectory, as that stock opened at its high of $73.40, up four bucks from the close the night before, and ended up finishing three cents below that day-before price, a round-trip that gaffed myriad buyers from the get-go.
So what happened? Would it have been better if both John Chen, CEO of BlackBerry and Gene Lee, CEO of Darden, had just kept their mouths shut?