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- BlackBerry bought a new company! Can't post the link unfortunately... Where's Corbu when you need 'em? :-)
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http://stks.co/vHGR
Posted via CB10
Posted via CB10
I don't see why he had to throw Palo Alto into the conversation here.02-24-16 12:22 PMLike 0 - ... Regarding the genius spouting off about Palo Alto versus BlackBerry; do I have it wrong, or is Palo Alto more of a contender against Cisco, and thus, not really dealing with what BlackBerry covers(?)
I don't see why he had to throw Palo Alto into the conversation here.
Posted via CB1002-24-16 12:41 PMLike 0 -
- A summary. Nothing really new:
BlackBerry's latest moves signal a clear turn to enterprise and security - Cantech Letter02-24-16 05:51 PMLike 9 -
- February 24: Great news! Because 2016’s a Leap Year, we’re extending our Great February Deals promo until February 29! That means you can leap into great savings on PRIV and Passport for another five days, but hurry – the offer still ends very soon!
Edit: Did not mean any disrespect, spiller. Just thought I would point this out as it was published late today.Last edited by Corbu; 02-24-16 at 08:49 PM. Reason: Added edit.
02-24-16 07:20 PMLike 7 - (UPDATED) A Great Month Just Got Even Better Thanks to BlackBerry?s Great February Deals | Inside BlackBerry
Edit: Did not mean any disrespect, spiller. Just thought I would point this out as it was published late today.02-24-16 10:20 PMLike 7 - Just a quick message to thank you guys for keeping up with the news on BlackBerry this week. I think they are doing a stellar job in software and security, this explains why the stock trades positive on the afternoon while the general market cratered. CJ was right, the stock is showing some positive TA against a weak background.
As for BlackBerry talking up new phones, I think they aren't close enough to talk about anything at this point and I wouldn't read anything more into it than that. The market wants them to drop handsets and become a pure play, they would gain $ .60/shr in EPS if they did that so the dropping of handsets is a major positive for the stock. I don't want them to give up on another potentially highly leveraged product. As software and security grow and take the limelight, handsets will go unnoticed and not matter in the scheme of things.
Thanks again for the timely updates team!
Anyway, the reason why I think MWC is/was a critical milestone for BlackBerry, is because JC mentioned that February would be a critical month for their hardware roadmap (will try to look up where he mentioned that later). So, with the quiet period coming up in just a few days, I believe they have just a few options : 1) announce *something* small regarding Vienna before quiet period (from a marketing standpoint preferably at MWC), or a rather big announcement for their hardware division in the coming days (which is probably not something you want to do at MWC) 2) put up with numerous rumors that will likely come out during their quiet period, which isn't a bad thing when you look at it long term. However, if they decide to do that, hardware sales/future will become a lot clearer on April 1st, with lots of questions asked since it all ties back to their FY2017 forecast.
Not sure if that makes sense. Perhaps I'm overestimating the 'time is not their friend' condition. But, if you keep PRIV at a high price point for a long time, and competitors come out with new and often cheaper devices, ... then you can either hope that the market you're targeting (even if it's just enterprise) wants your keyboard, more secure Android,...and are willing to wait for it. Looking at the Verizon customers waiting for the PRIV, that's often just not the case. The same could happen to people waiting for a PRIV alternative (Vienna?) through Rogers, Telus,... are they willing to wait?
Even if it the hardware story turns out to become what few BlackBerry customers had hoped, I hope they do something great with their hardware IP, launch the Marshmallow version in its full glory, and that their products become much more visible and accessible for many years to come.02-25-16 05:15 AMLike 12 - BNN - Watch TV Online | BlackBerry faces competition from the cloud amid cybersecurity push
Wed, Feb 24, 2016 - 12:45 PM
BlackBerry has purchased security firm Encription for an undisclosed amount as the Waterloo-based company launches a new professional cybersecurity consulting service. As BNN’s Paige Ellis explains, analysts are cheering the deal as a natural fit for BlackBerry, but warn it will face steep competition from the cloud in the cybersecurity field.02-25-16 08:11 AMLike 7 -
- Thanks Morgan. I really hope they get their hardware division back to profitable levels. Not just as an investor, but also as a consumer who believes that BlackBerry with their roots in hardware/software does a much better job than (almost) every other OEM out there. Perhaps I'm biased, but every consumer I believe is, to some extent.
Anyway, the reason why I think MWC is/was a critical milestone for BlackBerry, is because JC mentioned that February would be a critical month for their hardware roadmap (will try to look up where he mentioned that later). So, with the quiet period coming up in just a few days, I believe they have just a few options : 1) announce *something* small regarding Vienna before quiet period (from a marketing standpoint preferably at MWC), or a rather big announcement for their hardware division in the coming days (which is probably not something you want to do at MWC) 2) put up with numerous rumors that will likely come out during their quiet period, which isn't a bad thing when you look at it long term. However, if they decide to do that, hardware sales/future will become a lot clearer on April 1st, with lots of questions asked since it all ties back to their FY2017 forecast.
Not sure if that makes sense. Perhaps I'm overestimating the 'time is not their friend' condition. But, if you keep PRIV at a high price point for a long time, and competitors come out with new and often cheaper devices, ... then you can either hope that the market you're targeting (even if it's just enterprise) wants your keyboard, more secure Android,...and are willing to wait for it. Looking at the Verizon customers waiting for the PRIV, that's often just not the case. The same could happen to people waiting for a PRIV alternative (Vienna?) through Rogers, Telus,... are they willing to wait?
Even if it the hardware story turns out to become what few BlackBerry customers had hoped, I hope they do something great with their hardware IP, launch the Marshmallow version in its full glory, and that their products become much more visible and accessible for many years to come.
As is so often the case, I agree with everything you are saying here. I would mention that in addition to Chen making comments about the future of handsets in February, they also launched the Priv in 31 more countries during this quarter and that data is still very much unknown to them. I would think they need the results of Q4, and the time (March), to decide next steps. So I don't see how they can do anything more than proceed with the Vienna to a point of make or don't make and I also believe they are leaning on production but that it is delayed in our minds, not theirs. I would be devastated if they dropped handsets, I think they have everything that few others had in that sector which is a break-even cost and the opportunity to come up with the wonder phone that creates massive profits for them. I can't understand why they would give up on handsets knowing their brand still sells and the consumer is so into new and different things. Just the hope that they could design something special would keep me in that sector.
As for the stock, of course the stock would fly if they drop handsets just on earnings relief and a software P/E. At that point I would sell out for a handsome profit and move on of course. I personally feel they performed well at the MWC this week. Awhile back, Chen laughed when asked if he was still shopping for more acquisitions and he said "they needed to consolidate everything they purchased last year" and yet we have another deal! Love that guy.
The stock is doing very well here, the market is tense because the S&P 500 is about to test it's 50-dma again this week, I think it can make it through that milestone and set us up for another push higher from here. If you look at the chart, BBRY is ready for another leg up here. Notice how we head for the exits in a big way when the DOW/S&P look like they are changing direction and failing on that breakout, no one wants to be caught holding equities if this rally fails so everything drops on light volume, then we build for another attempt. Same today. Good luck.02-25-16 09:26 AMLike 14 - 02-25-16 09:38 AMLike 15
- Paige, Paige, Paige, I can look at you all day but you need to do some research and know that BlackBerry has crawled into bed with Microsoft! Let's see what they can do together before we lament the woes of our dear BlackBerry not having a major presence in the Cloud. Now I need to go back and watch that segment again just to be sure I got the message right, ... without the sound.02-25-16 09:43 AMLike 8
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- As Paige referred earlier to what Maynard Um had to say, I thought I would post his report.
Wells Fargo
Maynard Um
February 24, 2016
Equity Research
BlackBerry Limited
BBRY: Encription Acquisition Follows Software/Services Playbook
BlackBerry acquires Encription and announces new profession [sic] cybersecurity consulting services offering. Encription provides IT security and forensic services to customers in a number of sectors including the public sector, financial institutions, manufacturers, small to medium-sized enterprises as well as large corporates. The acquisition fits into the profile of BBRY’s focus on government and security with Encription having “one of the U.K. government’s highest security standards with the CESG SCHECK IT and ISO/IEC 27001 certification”. The acquisition of U.K.-based Encription was completed on February 19, 2016 – deal terms were not disclosed though the WSJ reports Encription has 40 employees (seems a relatively small acquisition). We believe BlackBerry’s leveraging of its reputation in security is a good strategy and recent acquisitions show its tight focus and a transformation to more software and services. However, in order to truly transform, we believe the company should exit the hardware business. While there are some signs of this direction, including layoffs of 200 employees in its Florida and Waterloo offices (75 in Florida), some of which we believe are hardware related (recall BlackBerry had been aggressively hiring employees from Motorola Mobility when the latter was going through transition issues years ago), we believe BlackBerry is testing the market to see whether there is demand for a more secure Android smartphone. If so, we believe BBRY will look to license out the technology rather than make its own hardware.
Nonetheless, it is apparent where the company is making investments (acquisitions) and where it is investing less (hardware). However, given where the company is in its transition, we maintain our Market Perform rating.
Valuation Range: $7.25 to $8.00
Our valuation range is based on a sum of the parts (FY2017E). BlackBerry faces several downside and upside risks. Downside risks include business model trasition, uncertain hardware demand, and a continued lack of profits. Upside risks include potential shareholder activism to spin off or sell assets, other strategic actions, or better than expected demand.
Investment Thesis:
We believe the business model is still transitioning away from legacy service access fee and T-Support revenue and while its security, QNX and Internet of Things revenue are growing, visibility to its new product demand is still low.02-25-16 10:54 AMLike 11 - Thanks Morgan!! So, the obvious question is now, what value do you see initially for a BlackBerry without a hardware division?
Posted via CB1002-25-16 10:58 AMLike 4 - Here are some fast numbers, it will cost them $ .10/shr to dump hardware, they will gain $ .60/shr in profits to the bottom line and if we are looking at just software/services growth, the P/E will be 30 so they could be worth $ 18.00/shr in short order. That is what everyone is talking about, the jump to profitability out of the box. The downside is the incredible cost of starting up a phone line. They would not be able to step back into this segment again and that is too high a risk versus their ability now to invent the next great thing. I like a company that has something unique in its portfolio and for BB, its the hardware division whether it is an enterprise tablet, a healthcare item or the continuation of the keyboard, they are differentiated and consumers are fickle. Why we need to be grossly discounted as the same software/services company described above, with an expected P/E = 30 when we produce hardware too, is beyond me. I think the company is no different with or without hardware as long as that sector breaks even. You could argue that hardware makes them more appealing but as you can see today, the stock price is reflecting a burdening risk to hardware. I don't want to talk about it any more, let's just go back to Paige.02-25-16 11:18 AMLike 15
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