NEW YORK (TheStreet) -- Shares of BlackBerry (BBRY) were gaining 2.2% to $7.45 on Monday afternoon following the announcement that AT&T (T) will start offering the BlackBerry Priv, the company's first Android smartphone, on Friday.
AT&T will be the first U.S. carrier to carry the BlackBerry Priv. The smartphone will be available on the carrier's website and in stores on November 6 for $249.99 with a two-year contract, or $37 a month on a Next 12 plan.
The Priv features a curved 5.4-inch display and a signature BlackBerry portrait sliding physical keyboard. The phone also includes BlackBerry's new DTEK warning system app that can monitor the security level of the phone to protect users' privacy and protect the phone from malware or malicious tampering.
Earlier on Friday, BlackBerry closed its $425 million acquisition of software company Good Technology, which could also be helping the company's stock. The company expects the acquisition to produce about $160 million in revenue in the year following the close of the deal.
"The Good and BlackBerry solutions are very complementary," BlackBerry Executive Chairman and CEO John Chen said in a statement. "Combined, BlackBerry solves one of the biggest challenges for CIOs - to securely manage all types of deployment models for any device operating system platform, whether on-premise or in the cloud."
TheStreet Ratings team rates BLACKBERRY LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate BLACKBERRY LTD (BBRY) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has declined marginally to $110.00 million or 4.34% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, BLACKBERRY LTD has marginally lower results.
- BBRY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 32.26%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, BLACKBERRY LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The revenue fell significantly faster than the industry average of 25.3%. Since the same quarter one year prior, revenues fell by 46.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for BLACKBERRY LTD is rather high; currently it is at 60.29%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BBRY's net profit margin of 10.38% significantly trails the industry average.
- You can view the full analysis from the report here: BBRY