[kadakn01]

More information on 13F,

MacKenzie financial bought 89M of the debt. Primecap, already the largest shareholder added another 624,400 bringing the total shares they own to 76,722,307 or nearly 15% of the company!

Posted on my Priv

[sidhuk]

Chen really does need to show hardware unit profit this Q. That will remediate the hardware money losing noise and let the company be valued without the hardware weight holding it down...and then hardware unit can just be a 'bonus' to the business going forward.

Posted via CB10

IMO, Analysts follow the wind and make or ignore excuses as it suits them. they all know how to use " My dog is Tommy and your Dog is just a Dog" scenario which ever way it suits them, when it comes to blackberry. seems like the wind has shifted. so hardware BS wont matter. fingers crossed.

[spiller]

If hardware show profit and software is growing how can the shorts stay short? We will see a SP rise as they lose their bear story and have to exit....

Posted via CB10

[jake simmons3]

At this point the short interest is a fraction of what it use to be and the remaining shorts are going to be hedging the bet in the form of call options to get out of there short positions without losing any money as the SP continues to rise as they exit. We might even still see a small short squeeze but it will be controlled and caused by them exiting their short positions. I think we will see the short position continue to go lower until next earning and if that earning shows a positive EPS then we could see many shorts exit there position and see a good SP spike that day.

[morganplus8]

At this point the short interest is a fraction of what it use to be and the remaining shorts are going to be hedging the bet in the form of call options to get out of there short positions without losing any money as the SP continues to rise as they exit. We might even still see a small short squeeze but it will be controlled and caused by them exiting their short positions. I think we will see the short position continue to go lower until next earning and if that earning shows a positive EPS then we could see many shorts exit there position and see a good SP spike that day.

They will have to find a more ingenious way to hedge their short position as there certainly isn't 550,000 Calls available to purchase in BlackBerry and any attempt to purchase a decent amount of Calls will trigger stock buying. On top of that, they are throwing away profit or enhancing losses by purchasing a Call out of the money. The bulk of the short position was likely hedged against a long portfolio of BBRY and that is coming off today as many bulls see the stock going higher. I personally think the re-call of the convertible bonds is driving this rally and it will continue for some time to come. The trick now is to recall the bonds before they end up in the money. Either way, the last shorts are going to hurt big time if this gets legs. What a nice problem to have, will Chen make HW profitable this Q? Ouch for the shorts if he does just that. I'm not sure how HW won't be profitable.

[jake simmons3]

I for one don't want any share dilution so I hope there is more re-calls

[morganplus8]

I for one don't want any share dilution so I hope there is more re-calls

kadakn01 - has pointed out that Prime is the largest single shareholder and I believe that Chen will try to redeem all of those bonds placing Prime in the "prime" position to rule the stock/company. Everything is setting up for one heck of a Fall trade here. If the bonds go, the company is literally available to be acquired at much higher levels, as it becomes a clean purchase at that point.

[_dimi_]

kadakn01 - has pointed out that Prime is the largest single shareholder and I believe that Chen will try to redeem all of those bonds placing Prime in the "prime" position to rule the stock/company. Everything is setting up for one heck of a Fall trade here. If the bonds go, the company is literally available to be acquired at much higher levels, as it becomes a clean purchase at that point.

Hi Morgan. Could it be that Fidelity purchasing the convertible debt was a matter of hedging a short position? If not, and they're doing it for the relatively high interest rate (must be hard for funds to earn money these days with such low rates?), why would a fund want to sell these bonds back to BlackBerry before November?

Posted via CB10

[Christophe Piquemal]

BlackBerry DTEK50 Review: A Secure Android Phone on the Cheap - WSJ

[morganplus8]

Hi Morgan. Could it be that Fidelity purchasing the convertible debt was a matter of hedging a short position? If not, and they're doing it for the relatively high interest rate (must be hard for funds to earn money these days with such low rates?), why would a fund want to sell these bonds back to BlackBerry before November?

Posted via CB10

You are right, that 6% return is at a very small risk and converts to their favourite company stock. It was smart of them to support the issue in the open market.

Here a summary of the terms of the bond issue that I posted to the thread awhile ago:

"LONG-TERM DEBT

Convertible Debentures

In fiscal 2014, Fairfax Financial Holdings Limited (“Fairfax”) and other institutional investors invested in the Company through a $1.25 billion private placement of the Debentures. Interest on the Debentures is payable quarterly in arrears at a rate of 6% per annum. The Debentures have a term of seven years and each $1,000 of Debentures are convertible at any time into 100 common shares of the Company for a total of 125 million common shares at a price of $10.00 per share for all Debentures, subject to adjustments. The Company has the option to redeem the Debentures after November 13, 2016 at specified redemption prices in specified periods. Covenants associated with the Debentures include limitations on the Company’s total indebtedness.

Under specified events of default, the outstanding principal and any accrued interest on the Debentures become immediately due and payable upon request of holders holding not less than 25% of the principal amount of the Debentures then outstanding. During an event of default the interest rate rises to 10% per annum.

The Debentures are subject to a change of control provision whereby the Company would be required to make an offer to repurchase the Debentures at 115% of par value if a person or group (not affiliated with Fairfax) acquires 35% of the Company’s outstanding common shares, acquires all or substantially all of its assets, or if the Company merges with another entity and the Company’s existing shareholders hold less than 50% of the common shares of the surviving entity. "

This is way I'm suggesting that this Fall is going to be an interesting time for BlackBerry stock. If someone takes a run at the company, BB must counter with an offer to retire the bonds at a 15% premium to their face value allowing that company making the takeover offer, a chance to see all of the common stock available for purchase, and thus "potentially"complete a takeover at some price. By retiring the debt, that door opens up so much easier for them to take a run at BB. I'm not saying I want it to be taken over, rather, we would benefit from this debt reduction and avoidance of a possible dilution of common stock as we turn profitable going forward. Hence, a much higher stock valuation.

[morganplus8]

Hi Morgan. Could it be that Fidelity purchasing the convertible debt was a matter of hedging a short position? If not, and they're doing it for the relatively high interest rate (must be hard for funds to earn money these days with such low rates?), why would a fund want to sell these bonds back to BlackBerry before November?

Posted via CB10

Sorry, I missed one of your questions. I don't know why someone would want to sell their bonds now but it stands to reason that getting out early at the same premium they will be forced to take a couple of months from now does have some value to them. Chen stated he wants to call the bonds, they are able to do it early at Chen's set price so why not sell to him. Chen can take those bonds starting on Nov. 14th 2016 and he will pay the premium and do just that. I assume that a party stepped up and offered their bonds and he agreed to purchase them early. I hope to hear from Chen that this was the case.

[Corbu]

WSJ:
Video Review
BlackBerry DTEK50 Review: Secure No-Frills Android

Oups! Review already posted by Christophe. Merci!

[masterful]

More information on 13F,

MacKenzie financial bought 89M of the debt. Primecap, already the largest shareholder added another 624,400 bringing the total shares they own to 76,722,307 or nearly 15% of the company!

Posted on my Priv

Are they trying buy the whole company

Posted via my BlackBerry PRIV

[kadakn01]

Are they trying buy the whole company

Posted via my BlackBerry PRIV

Unfortunately No, their mandate is they won't buy more than 15% of any company. The manage money for vanguard as well as their own funds and do not talk to anyone! They are highly respected in the industry.

On a related note some more updates:

Ontario teachers pension board added 1.59M shares so they now have 13M shares and bought 37,250 calls and X 100 so equal to 3.725M shares. (we don't know what strike price and what month, also this is not a covered call as 13F only report LONG positions)
Renaissance technologies added 1.2M shares and has about 16M shares now.
Vanguard and dimensional fund advisors added about 10% to 30% their respective positions.
On the flip side, notable sellers where Contrarius investment management selling about 2M shares and has only 584K remaining. Montrusco Bolton investments sold their entire stake of 1.2M shares

And credit suisse sold about 3.7M in the debt and sold about 10K put options (with none remaining, and probably a hedge), and added a little to their 1.6M shares of stock.

Posted on my Priv

[Sigewif]

Attachment 403772

With the current share price and hot summer days, the only thing that helps me sleep at night is the faith in a Fan of BlackBerry.

Posted via CB10

I want one.

[farmwersteve]

I want one.

I think one of them got tangled up in my daughters hair and broke!

Posted via CB10

[Superfly_FR]

Wondering how close we might be from a buyout situation (aka $15+ valuation) and if current company's situation is such that Chen, Prime and Prem would agree to sell at this price point or consider the light is bright enough to decline ...

(From my vacations, DTEK50 powered - great so far - cheers all ! )

Posted via the CrackBerry App for Android

[Corbu]

"Beaux Jours" indeed!

Have a nice vacation, SF.

PS: No buyout for me.

[robot_ca]

"Beaux Jours" indeed!

Have a nice vacation, SF.

PS: No buyout for me.

I'm with you Corbu. We need a strong independent Canadian tech company that is going to be around for the long haul.

Sent from my awesome Z30

[TGIS]

I'm with you Corbu. We need a strong independent Canadian tech company that is going to be around for the long haul.

Sent from my awesome Z30

BlackBerry?

[Superfly_FR]

Another DTEK50 pic, this device is really capable, definitely.

And yes, I do hope BlackBerry will remain independent. That'll be the greatest "surprise" I was hoping for in OP, 5 years ago (in October).

Posted via the CrackBerry App for Android

[theRock1975]

Don't understand why BB10, as a RTOS, does not take good pictures.

Oops! I overlooked this one.

Pair the bluetooth on your smartphone to a music gateway. Play a song, start taking photos or videos. You'll know what I mean with an Andriod/Iphone. The sound will studder.

Edit: a beast spec Android phone might be ok.

[theRock1975]

Wondering how close we might be from a buyout situation (aka $15+ valuation) and if current company's situation is such that Chen, Prime and Prem would agree to sell at this price point or consider the light is bright enough to decline ...

(From my vacations, DTEK50 powered - great so far - cheers all ! )

Posted via the CrackBerry App for Android

This is inspiring. Thanks Superfly. Hi 5 from Canada!!

[Superfly_FR]

Don't understand why BB10, as a RTOS, does not take good pictures.

Very likely related to HW (lens, captor).
But I remember taking some excellent pictures with my Passport though.
So, maybe the photographer too

Posted via the CrackBerry App for Android

[davemason2k]

That WSJ video review is amusing. The guy gives a mixed review, mostly highlighting negatives and then promotes two other phones around the same price.