[kellyweng88]

hmm not sure what to do, should I sell some of my shares now or wait for it to go higher?? Normally I use RSI to help with my selling/buying but since this is on news, not sure how long this pop will sustain.

experts, what do you think?

[JonCBK]

Wow. Well like I said a few days ago, BBRY is a risky company to have a short position in. This must presumably have wiped out all the current shorts (I assume all folks who short companies put some sell orders in to minimize the damage of a sudden increase). Now some folks may want to come in and short at $9. But BBRY is going to have a very nice cash war chest as soon as this is paid. Or BBRY will go back to being debt free.

Now TLC let's get those pre-order pages up! I've got some paper profits to spend!

[Andy_bb_king]

Man, we have been waiting for such days for too long! Cheers folks!

Posted via CB10

[Andy_bb_king]

M8, you nailed it yesterday again! What are your thoughts today?

Posted via CB10

[kellyweng88]

ugh, its looking like i missed the window for the highest gains

[Corbu]

BlackBerry Surges 17% on Award of $815M from Qualcomm - Tech Trader Daily - Barrons.com

Shares of BlackBerry (BBRY) are up $1.29, or 17%, at $8.99, in early trading the company announced it was awarded roughly $815 million from Qualcomm (QCOM) for having overpaid the latter in royalties, as a result of arbitration between the two. The final terms of the aware await a May 30th hearing. BlackBerry CEO John Chen said his company and Qualcomm are still “valued technology partners.”

The award comes as Qualcomm is counter-suing Apple (AAPL) in a dispute over royalties.

The refunds come because BlackBerry in recent years fell below the rate of smartphone shipments it had originally expected under its deal with Qualcomm.

Mike Walkley of Raymond James, who has a Hold rating on BlackBerry stock, raises his price target today to $9.50 from $8.

Paul Treiber with RBC Capital, who has a Sector Perform rating on the shares, writes that “we believe the majority of investors were not assuming any material award to BlackBerry from the arbitration.”

This will add in a big way tot BlackBerry’s cash:

The award equates to $1.53 per share, assuming the award is not fully taxable, given BlackBerry’s prior losses. Following the award, BlackBerry’s net cash would increase to $1.9B ($3.62/share) from $1.1B ($2.09/share) as of Q4/FY17.

[morganplus8]

M8, you nailed it yesterday again! What are your thoughts today?

Posted via CB10

Hi Andy,

The only credit that I will take is that I noticed on the charts and volume indicators that we had reversed our downtrend from noon until the close, that we had 15 minutes of AH that looked unusually good for BBRY as it was continuous buying and the price of the stock went up. That's it, I wondered if news was coming based upon those changes in the way the stock was trading. Anyone could have witnessed that by following the volume shift.

As for the news, it is great, I never knew that the amount of funds being challenged for was that great. A real pro would have known the potential of that settlement so I am humbled by the size of the settlement. For me, it is old news now.

It should be noted that we are celebrating $ 815 MM bucks here but the interest on that amount will be huge too. The bulk of the charges occur in the earliest part of the cycle and money at 6% (which was their bond interest rate at that time), plus compounding, will make that portion of the settlement much higher. It should also be noted that Chen can't retire the debt so the best that he can do now is buy back shares or purchase assets to grow the business.

The price of the stock, the real news today is actually the deal with ANT to do payment transactions through BBM! This is huge news as it also suggests that something might happen with them as a partnership back in China and abroad, so this news was really exciting for me.
Back to the price of the stock, the problem with news like this, and CJ has pointed this out, is that we need to see a whole new bunch of investors who are willing to own the stock for years; commit or buy it today. The company hasn't changed, they hold some risk, however much that risk has been reduced. So now we need Funds to sit down in the boardroom and decide if they think BBRY is worth holding for several years. This is the reason why the stock is not above $ 9.50/shr at this moment. The stock is really reflecting a settlement of only $ 600 MM right now because at $ 9.50/shr you are looking at an investment and not a growth story. With the DOW Jones about to drop below its 50-dma, the Trump rally looks to be over for months to come. So now it is far more difficult for a Fund to commit to BBRY for these reasons. As I see it, when the stock trades below $ 9.00 it is no different than when it sat at $ 6.70/shr earlier this year. It is dirt cheap, they could buy back 100,000,000 shares and it would be at $ 12.00/shr under that scenario. What will Chen do and what will he say about the settlement? It should be a very interesting time at the GM later this year!

In summary, the stock is way too cheap to sell here, it will take time for "investors" to decide what to do with it as it is an investment in discounted cash and not so much a "going concern" at these levels. I will hold what I have and see where we go in the next two months but today is exciting based on the BBM news for me. I should also say that shorts are aware of the fact that the company will receive cash, there is no revenue or EPS adjustments here so they will regroup and hold the price down at this point.

Best of luck everyone and let's be sure to talk up that BBM deal, good news.

[BanffMoose]

The price of the stock, the real news today is actually the deal with ANT to do payment transactions through BBM! This is huge news as it also suggests that something might happen with them as a partnership back in China and abroad, so this news was really exciting for me.

Does BlackBerry actually benefit from that deal? I thought they sold BBM to Emtek and only get a royalty stream from now on. If anything doesn't this just keep consumer BBM relevant for the time being?

i'll now go read the cited article.

Posted via CB10

[app_Developer]

Nice little surprise today! Congrats, everyone.

[Corbu]

Amber Kanwar‏ @amberkanwar

BlackBerry upgraded to Scotia after settlement windfall with Qualcomm $BBRY $QCOM #NotableCall

[Corbu]

Amber and Andrew McCreath:
McCreath: Why BlackBerry is a good under the radar story - Video - BNN

Excellent!

[morganplus8]

Does BlackBerry actually benefit from that deal? I thought they sold BBM to Emtek and only get a royalty stream from now on. If anything doesn't this just keep consumer BBM relevant for the time being?

i'll now go read the cited article.

Posted via CB10

You are absolutely correct, it is a royalty play but it also opens the door to Africa, India and possibly China. It tells the world that BBM is a force in other countries with large populations. BlackBerry is all about re-occurring revenues and you know that Chen will always develop relationships that contain the potential to take those initial contracts/agreements abroad. In two years time, BBM could be at 300 - 500 MM in terms of active, value-added users. Chen has nothing else to do now but to promote all things BlackBerry in terms of licensing deals and all of these deals add to the bottom line and they are very sticky business deals. At the end of the day, I want to see revenue grow with high margins and that's what we are hearing about today.

[Corbu]

BlackBerry, Modagrafics introduce BlackBerry Radar | Asset tracking | Technology content from Fleet Owner

[DaSchwantz]

Hi Andy,

The only credit that I will take is that I noticed on the charts and volume indicators that we had reversed our downtrend from noon until the close, that we had 15 minutes of AH that looked unusually good for BBRY as it was continuous buying and the price of the stock went up. That's it, I wondered if news was coming based upon those changes in the way the stock was trading. Anyone could have witnessed that by following the volume shift.

As for the news, it is great, I never knew that the amount of funds being challenged for was that great. A real pro would have known the potential of that settlement so I am humbled by the size of the settlement. For me, it is old news now.

It should be noted that we are celebrating $ 815 MM bucks here but the interest on that amount will be huge too. The bulk of the charges occur in the earliest part of the cycle and money at 6% (which was their bond interest rate at that time), plus compounding, will make that portion of the settlement much higher. It should also be noted that Chen can't retire the debt so the best that he can do now is buy back shares or purchase assets to grow the business.

The price of the stock, the real news today is actually the deal with ANT to do payment transactions through BBM! This is huge news as it also suggests that something might happen with them as a partnership back in China and abroad, so this news was really exciting for me.
Back to the price of the stock, the problem with news like this, and CJ has pointed this out, is that we need to see a whole new bunch of investors who are willing to own the stock for years; commit or buy it today. The company hasn't changed, they hold some risk, however much that risk has been reduced. So now we need Funds to sit down in the boardroom and decide if they think BBRY is worth holding for several years. This is the reason why the stock is not above $ 9.50/shr at this moment. The stock is really reflecting a settlement of only $ 600 MM right now because at $ 9.50/shr you are looking at an investment and not a growth story. With the DOW Jones about to drop below its 50-dma, the Trump rally looks to be over for months to come. So now it is far more difficult for a Fund to commit to BBRY for these reasons. As I see it, when the stock trades below $ 9.00 it is no different than when it sat at $ 6.70/shr earlier this year. It is dirt cheap, they could buy back 100,000,000 shares and it would be at $ 12.00/shr under that scenario. What will Chen do and what will he say about the settlement? It should be a very interesting time at the GM later this year!

In summary, the stock is way too cheap to sell here, it will take time for "investors" to decide what to do with it as it is an investment in discounted cash and not so much a "going concern" at these levels. I will hold what I have and see where we go in the next two months but today is exciting based on the BBM news for me. I should also say that shorts are aware of the fact that the company will receive cash, there is no revenue or EPS adjustments here so they will regroup and hold the price down at this point.

Best of luck everyone and let's be sure to talk up that BBM deal, good news.

Morgan, I'm also curious about the interest, because it's also going to be significant on a $/share basis, and I'm trying to reset my entry and exit points...I cleared 10% of my holdings at 9.12 this AM because it's now becoming too big a portion of my portfolio...was reluctant to do it, but pigs get slaughtered. May start taking an options position if sp drifts down further.

Curious to know if any of the calls you previously wrote got hit...

[DaSchwantz]

Morgan, I'm also curious about the interest, because it's also going to be significant on a $/share basis, and I'm trying to reset my entry and exit points...I cleared 10% of my holdings at 9.12 this AM because it's now becoming too big a portion of my portfolio...was reluctant to do it, but pigs get slaughtered. May start taking an options position if sp drifts down further.

Curious to know if any of the calls you previously wrote got hit...

Also, please note I believe the converts are traded on the cdn bond market so bbry could potentially acquire some back by stealth if Fairfax is willing to feed the float at a bid price both parties are comfortable with. They last traded at 101.

http://www.financialpost.com/markets...ebentures.html

[morganplus8]

Morgan, I'm also curious about the interest, because it's also going to be significant on a $/share basis, and I'm trying to reset my entry and exit points...I cleared 10% of my holdings at 9.12 this AM because it's now becoming too big a portion of my portfolio...was reluctant to do it, but pigs get slaughtered. May start taking an options position if sp drifts down further.

Curious to know if any of the calls you previously wrote got hit...

I went into earnings option free so it was a record amount of free held stock for me. I always re-invest the profits I make trading BlackBerry back into BBRY so it compounds each time. My plan is to sell all of the trading stock at $ 9.50/shr assuming the news is all out there now. I believe that this settlement should place the stock at a fair value of $ 9.50/shr today. The downside is limited here, everyone is looking at their cash and prospects going forward and I would think new money is buying right now. Just watch the bid/ask and you'll see how comfortable buyers are with the trade today. Then there are those shorts ................

And so I'm a seller of BBRY at $ 9.50/shr, in my trading account only, which I believe we will see soon. I'm concerned about the Trump rally ending any day now so that is why I want to go to cash. All of that money will go into SPHS next. Regarding my long term holdings in BBRY, I'm like you, I hold a very high percentage of BBRY now versus everything else. But I must say, I'm so into this trade that I'll not only keep that block I'll add to it on weakness. My wife hates me for this. GL

[morganplus8]

Also, please note I believe the converts are traded on the cdn bond market so bbry could potentially acquire some back by stealth if Fairfax is willing to feed the float at a bid price both parties are comfortable with. They last traded at 101.

Convertible Debentures | Market Data | Markets | Financial Post

So true, as you well know, they took a run at those bonds on the open market and barely picked up any. The bids at that time carried some premium and still no one would sell. We also know that Prem can't sell his bonds without destroying his average on his stock purchases. He had to buy the convertibles to maintain his lower cost average. I believe that he has to hold those bonds to prevent a major realized loss in the event that a < $ 13.00/shr bid comes from outside his group. The other point I made when earnings hit a couple of weeks ago, and it is more relevant today, is that this company is a great M&A purchase itself. Everyone knows that Chen and Prem would take a serious look at $ 15.00 plus now and it is priced today to go out at that level no problem. Prem would save face and make some money and Chen holds 8.8 MM shares at a strike right below today's price level.

If Chen wanted to bump his EPS up this year, now is the time to go directly to the market and buy shares. The only way this strategy doesn't make sense is if he can make superior returns on M&A himself. We'll see! I can't wait to hear from him, I don't think you could wipe the grin of his face if his daughter found out she wasn't accepted into medical school. He is on a roll now.

[Bacon Munchers]

Sweet Georgia Brown!

Dad just might get that new bow for his b-day this year.
Congrats indeed fellas.

[_dimi_]

Anyone remember this?

http://www.theverge.com/2013/11/1/50...ckberry-buyout

Posted via CB10

[theRock1975]

WOOOOOOOOOOOO!!!!! Congrats gang!.... Guess who is still holding those 4/21 calls....

Your call options are the first thing I thought when I heard the news! Congratulations man, I'm glad you held on!

BlackBerry is turning into a cash cow.

Posted via CB10

[Blackjack66]

I went into earnings option free so it was a record amount of free held stock for me. I always re-invest the profits I make trading BlackBerry back into BBRY so it compounds each time. My plan is to sell all of the trading stock at $ 9.50/shr assuming the news is all out there now. I believe that this settlement should place the stock at a fair value of $ 9.50/shr today. The downside is limited here, everyone is looking at their cash and prospects going forward and I would think new money is buying right now. Just watch the bid/ask and you'll see how comfortable buyers are with the trade today. Then there are those shorts ................

And so I'm a seller of BBRY at $ 9.50/shr, in my trading account only, which I believe we will see soon. I'm concerned about the Trump rally ending any day now so that is why I want to go to cash. All of that money will go into SPHS next. Regarding my long term holdings in BBRY, I'm like you, I hold a very high percentage of BBRY now versus everything else. But I must say, I'm so into this trade that I'll not only keep that block I'll add to it on weakness. My wife hates me for this. GL

Hey Morgan, whats your scoop on Sophiris Bio? A bio stock under 5 seems risky.

[Corbu]

https://www.wsj.com/articles/blackbe...omm-1492000724
BlackBerry Awarded $814.9 Million in Arbitration Against Qualcomm

Qualcomm Inc. on Wednesday said it was ordered to refund $814.9 million in patent royalties paid by BlackBerry Ltd., the latest in a string of setbacks to the chip maker's intellectual-property licensing business.

The dispute between Qualcomm and BlackBerry -- over a refund of prepayments based on a disagreement over royalty rates -- is particular to a licensing agreement between the two companies, Qualcomm said. It has no impact on Qualcomm's licensing agreements with other companies, it said.

Still, the issue resonates with the broader question of how much Qualcomm can continue to profit its intellectual property.

The San Diego-based company has developed technology deemed essential to cellular communications, and it collects royalties from nearly every smartphone sold world-wide -- a business that accounts for most of its profit.

However, that business in recent years has been under attack. Customers and regulators in several countries have claimed Qualcomm's licensing regime violates laws governing fair competition. Apple Inc. in January sued Qualcomm, claiming the company uses its dominant position in smartphone chips to charge onerous royalties. The U.S. Federal Trade Commission charged Qualcomm with anticompetitive practices, and antitrust authorities in China and South Korea have levied fines against the company.

"There's an overarching question whether customers will continue to pay them what they've been paying," said Stacy Rasgon of Bernstein Research. "We've seen evidence that customers are doing whatever they can in an attempt to pay them less."

Qualcomm said it doesn't agree with the decision, but it can't be appealed.

The payment will be a big boost for BlackBerry, amounting to nearly two-thirds of the total revenue BlackBerry generated in fiscal 2017. A final award including interest and attorney fees will be issued at a hearing next month, BlackBerry said in a press release.

The news sparked a rare double-digit spike in BlackBerry's stock price, which rose more than 16% midday to $8.96 -- the highest price in more than a year.

Despite the dispute, the companies called each other valued partners that would continue to work together.

The award settles binding arbitration between the companies that has been in progress since at least mid-2016, according to Qualcomm financial filings.

Qualcomm charges royalties based on a percentage of the average selling price of a device, but its licensing agreement with BlackBerry included a cap on that price basis. The refund that BlackBerry won in arbitration retroactively applies that cap to the prepayments.

Such caps are a negotiable aspect of Qualcomm's licensing agreements, a person familiar with the matter said. Qualcomm hasn't disclosed the dollar amount of any caps it has agreed to.

The company has said its royalty rate can be as much as 5% of the average price per device, but reported its average royalty rate as 2.9% in its most recent fiscal year, as implied by its total royalty revenue and its internal research on the number of devices shipped and their prices.

Qualcomm's payment to BlackBerry is a refund on royalty fees BlackBerry prepaid to Qualcomm on future sales of devices between 2010 and 2015, which explicitly weren't refundable, Qualcomm said.

BlackBerry, a pioneer in smartphones, saw its sales tumble during that period. In fiscal 2011, it generated $16.4 billion in revenue on hardware sales, largely from shipping 52.3 million smartphones. By fiscal 2015, hardware revenue plunged to $1.5 billion as smartphone shipments fell to 4 million.

[momantm]

Hmm, with this 1B refund, does this mean the company has been turning a profit these last couple of years?
Well, they're out of hardware now, but I find this a bit ironic.


Posted via CB10

[app_Developer]

Hmm, with this 1B refund, does this mean the company has been turning a profit these last couple of years?
Well, they're out of hardware now, but I find this a bit ironic.

I've been wondering the same thing. What does this do to the p/l of the mobility solutions unit for the past few quarters? How will this windfall be accounted in their results? Are there tax implications?

[b121]

Yea, officially in the black today! It hasn't happened very often since I started buying in the 50s . I've accumulated a pretty decent size holding and happy to be positive. .

Congrats to everyone who is long!!!