[Redzinaldas]

https://www.cantechletter.com/2019/1...d-of-tech/amp/

Is BlackBerry the Rodney Dangerfield of tech?

[EchoTango]

https://www.cantechletter.com/2019/1...d-of-tech/amp/

Is BlackBerry the Rodney Dangerfield of tech?

Not in my view.

I was thinking something more along the lines of flaming red hair, a large red nose, outrageously oversized shoes and an equally ridiculously small car.

[Corbu]

BoA:

BlackBerry +2% as former bear praises valuation

Nov. 4, 2019 7:22 AM ET|About: BlackBerry Limited (BB)|By: Brandy Betz, SA News Editor

Bank of America steps up from Underperform to the BlackBerry (NYSE:BB) sidelines, joining the average Sell Side rating, and lifts the target by a dollar to $7.

BofA sees "limited downside" with shares down more than 45% since a March high and a sum-of-the-parts valuation implying a "likely floor" at $5/share.

Analyst Daniel Bartus notes that the valuation is offset by near-term execution problems and the potential for future earnings disappointments.

BlackBerry shares are up 2% pre-market to $5.60.

[Corbu]

https://www.blackberry.com/us/en/com...n-web-services
BlackBerry AtHoc & BlackBerry SecuSUITE Solutions Now Available on Amazon Web Services

[Corbu]

BoA/ML

Daniel Bartus

BlackBerry

Sum-of-the-parts analysis shows downside is limited; upgrade to Neutral

Rating Change: NEUTRAL | PO: 7.00 USD | Price: 5.49 USD Equity | 04 November 2019

Upgrade to Neutral; raise PO to $7 based on new SOTP

Following a 40% decline in the share price over the last year, we upgrade Blackberry to Neutral from Underperform and raise our PO to $7 from $6, based on our updated sum-of- the-parts (SOTP) valuation. Our SOTP indicates a likely floor for the stock at roughly $5, and therefore limited downside at current levels. The stock is currently trading at 2.2x our CY21 EV/Sales vs peers generally above 3x, and we believe investors are potentially overlooking some key assets, such as Cylance, QNX, and Athoc. Favorable valuation is offset by near-term execution issues and the potential for further quarterly result disappointments (our estimates are below the Street), hence our Neutral rating.

Cylance, QNX likely undervalued, present strategic options

We flag some attractive assets under the hood, which help add to the valuation support at current levels. First, Cylance is a leader in next-generation endpoint protection platforms (EPP), competing closely with vendors such as CrowdStrike, CarbonBlack, Sophos, Symantec, and others. CrowdStrike currently trades at 12x+ CY21 EV/Sales and press reports suggest others have received acquisition offers ranging at 4-5x sales. Given Cylance’s high growth profile, we incorporate a 4.8x multiple for Cylance in our SOTP. Second, QNX auto hype has diminished, but the business remains a leader in attractive auto software applications. We do not view QNX as synergistic with the enterprise cyber security business, and therefore see the potential to explore strategic divestments that could be positive for the valuation. Lastly, we see some potential for an Athoc turnaround, which may be an underappreciated asset.

Risks: show-me story needs better execution

We build bear, base, and bull case SOTP valuation models (see inside for details). This suggests a valuation range with limited downside in a negative scenario and substantial upside in the most positive scenario. We note, however, the risk that Street estimates may be revised lower and we see some risks related to the near-term execution.

Management has flagged sales turnover and management changes that are weighing on the go-to-market efforts. We also remain concerned about IP Licensing growth, and we assign a low 1.5x EV/S multiple for the segment in our SOTP.

[More later]

[_dimi_]

Not sure if it was posted here, but Fundamental Innovation Systems and Apple have settled their dispute. Which basically means that Apple is now paying BlackBerry for USB charging technology.

[kellyweng88]

Not sure if it was posted here, but Fundamental Innovation Systems and Apple have settled their dispute. Which basically means that Apple is now paying BlackBerry for USB charging technology.

can you elaborate more on this? Who is fundamental innovation systems? Thanks!

[_dimi_]

can you elaborate more on this? Who is fundamental innovation systems? Thanks!

Hello! Please go to page 4381

[_dimi_]

Double post

[_dimi_]

Meanwhile, their case against Twitter is still showing up as 'open' (current status) while the proposal to dismiss by Fundamental Innovation Systems in their case against Apple was filed on 31/10, and granted by the judge on the same day. So perhaps this caused share price to rise on Friday..

EDIT: and the latter case is now (obviously) showing up as CLOSED

[Corbu]

Amber:
https://www.bnnbloomberg.ca/the-open

Execution...

[kellyweng88]

Hello! Please go to page 4381

I see, thank you

[Corbu]

https://www.prnewswire.com/news-rele...300951101.html

WATERLOO, Ontario, Nov. 4, 2019 /PRNewswire/ -- BlackBerry Limited (NYSE: BB; TSX: BB) today announced that Bryan Palma, President and Chief Operating Officer has decided to leave the company to pursue other opportunities. Palma was appointed in January 2019 and oversaw the BlackBerry IoT Business.

The BlackBerry IoT Business will report directly to John Chen, Executive Chairman and CEO.

[_dimi_]

So their COO, Bryan Palma, has left. One step forward, two steps backward.......

[EchoTango]

https://www.prnewswire.com/news-rele...300951101.html

WATERLOO, Ontario, Nov. 4, 2019 /PRNewswire/ -- BlackBerry Limited (NYSE: BB; TSX: BB) today announced that Bryan Palma, President and Chief Operating Officer has decided to leave the company to pursue other opportunities. Palma was appointed in January 2019 and oversaw the BlackBerry IoT Business.

The BlackBerry IoT Business will report directly to John Chen, Executive Chairman and CEO.

Well folks, if you don't produce while making a multi-million dollar income, the inevitable will happen. This is one factor sometimes overlooked when taking these high flyer positions is that performance expectations are high and consequences are swift.....as they should be.

As COO he was primarily responsible for corporate execution of the company vision and I can only extrapolate by this action the Board and other senior management had lost confidence in his ability to deliver. Darwin cannot be ignored !

Let's hope the next COO is more capable and breathes new life into this faltering organization.

[Chuck Finley69]

Well folks, if you don't produce while making a multi-million dollar income, the inevitable will happen. This is one factor sometimes overlooked when taking these high flyer positions is that performance expectations are high and consequences are swift.....as they should be.

As COO he was primarily responsible for corporate execution of the company vision and I can only extrapolate by this action the Board and other senior management had lost confidence in his ability to deliver. Darwin cannot be ignored !

Let's hope the next COO is more capable and breathes new life into this faltering organization.

The fact that IOT will report to John Chen himself, means that BOD could be stepping up accountability with the absolute top of the food chain. At minimum, John Chen is taking ownership.

[drobbie]

The fact that IOT will report to John Chen himself, means that BOD could be stepping up accountability with the absolute top of the food chain. At minimum, John Chen is taking ownership.

Well folks, if you don't produce while making a multi-million dollar income, the inevitable will happen. This is one factor sometimes overlooked when taking these high flyer positions is that performance expectations are high and consequences are swift.....as they should be.

As COO he was primarily responsible for corporate execution of the company vision and I can only extrapolate by this action the Board and other senior management had lost confidence in his ability to deliver. Darwin cannot be ignored !

Let's hope the next COO is more capable and breathes new life into this faltering organization.

This last guy was not there long enough to make much of a difference.

It is concerning that BlackBerry cannot retain management talent.

[Chuck Finley69]

This last guy was not there long enough to make much of a difference.

It is concerning that BlackBerry cannot retain management talent.

The difference would have simply been strategy implementation and I believe that was lacking. More of the same as before without improved results or probabilities of such was not acceptable from somebody with COO title.

[drobbie]

The difference would have simply been strategy implementation and I believe that was lacking. More of the same as before without improved results or probabilities of such was not acceptable from somebody with COO title.

BlackBerry's strategy have been haphazard for years. Chen owns that. Focus should be to do one or two things very well. Instead it is all over the map in a number of verticals.

[Chuck Finley69]

BlackBerry's strategy have been haphazard for years. Chen owns that. Focus should be to do one or two things very well. Instead it is all over the map in a number of verticals.

Which also explains who’s taking over Palma’s job responsibilities...

[Seadog83]

This last guy was not there long enough to make much of a difference.

It is concerning that BlackBerry cannot retain management talent.

This is concerning to me for exactly that reason. As Chen is certainly all too aware, at the highest levels change happens slowwwww, and momentum is the dominant force. 10 months isn't even long enough to see the first inklings of whether a new strategy is starting to bear fruit. Either he was so bad at the job it was blindingly obvious after such a short time he needed to be cut loose, or once he got his feet wet he saw what an impossible spot he was in and wanted out. Neither particularly bodes well.

The other issue is that with this constant revolving door of the C level spots, it really starts to beg the question is it the this long cast of characters - all of whom had pretty respectable resumes which is the problem, or is it the position itself. If I want a company that sells flying cars for $100, I'm sure there's no shortage of people who will take my COO job for $500k/yr. No matter how many people come through, and how great their resumes are though, I doubt any will succeed.

It's almost reminiscent of the Russians in WW2. Lose against a German foe 10x the size and much better equipped, and well clearly the problem is the commander, so we'll just keep executing then promoting the next highest guy until they're victorious.

[Sigewif]

So their COO, Bryan Palma, has left. One step forward, two steps backward.......

He didn't last long. It is interesting to observe how executives can be brought into a company with their experience and qualifications from high level positions at other companies. But perhaps they don't really have a vision or passion for the new company. At the end of the day a lucrative salary can not buy vision or passion. I hope he finds what he is looking for in his new pursuits.

[elfabio80]

Well folks, if you don't produce while making a multi-million dollar income, the inevitable will happen. This is one factor sometimes overlooked when taking these high flyer positions is that performance expectations are high and consequences are swift.....as they should be.

As COO he was primarily responsible for corporate execution of the company vision and I can only extrapolate by this action the Board and other senior management had lost confidence in his ability to deliver. Darwin cannot be ignored !

Let's hope the next COO is more capable and breathes new life into this faltering organization.

I agree with you....but then you have Chen....that should be go home following your statement.

Anyway...maybe Palma did not see any possibility to work as he though or he had no means to put in place his strategy. If he agreed to go somewhereelee it is also legitim.

[W Hoa]

It's being suggested that he is leaving for other pursuits. Which might just be the polite way of saying something else.

"The company says Palma, based out of the company's San Ramon, California office, has decided to leave the company to pursue other opportunities after starting in the position in January."

[_dimi_]

I would be suprised if yesterday's move does NOT imply further downward revisions with regards to ESS numbers. To me, this move explains why JC felt the need to revise their previous revenue guidance numbers to the "lower end" of their previously stated goal. We've seen this movie before. They've covered themselves in for class action lawsuits, they've found and fired their "cause", and hopefully JC can claim that ESS has bottomed out. But first we'll see another hit?