View Poll Results: Did you buy shares ?

Voters
1106. You may not vote on this poll
  • Yes, I'm acting now !

    693 62.66%
  • No

    413 37.34%
  1. spiller's Avatar
    Last quarter Chen said wait for September quarter.... We need some PR saying they signed up Honda for 3 modules per car.
    06-23-17 09:00 AM
  2. Mr BBRY's Avatar
    Bought back half of what I sold yesterday. Waiting to buy rest when it finds a bottom. I've said it before, I love the company, hate the stock.
    Nice move! I'm feeling some pain today for not having followed you in this trade, but ya win some and ya lose some. If you look at the long term big picture, which I know many of us have been invested for, today's stock price is not so bad. A year ago, I would have been thrilled to be at $10/shr, so here we are. AndyBBKing just said it best, we chose BBRY for its prospects, not because we expected huge revenues. Not yet at least, but we'll get there. This just wasn't the quarter for us bulls. Now let me run so I can figure out which long term call options I can go buy for a bargain. Hang in there gang, cheers!
    06-23-17 09:15 AM
  3. morganplus8's Avatar
    Finally starting to see some flash bids come in. I'm still wrapping my head around their announcement that they are acquiring a decent sized tech company. That share buyback plan is a big one, you always want them to buy shares at the best price and not pay a 60% premium on an acquisition so why not BlackBerry? Chen can't wipe out the debt and he wants to protect Prem so he goes into the market for an over $ 600 MM acquisition. The scary part in all of this is that it sets BBRY up as an acquisition itself as the growth in this name is becoming clear that it is going to happen post stock acquisition now. I think there are a number of companies that would consider buying it as it sits today at $ 16.00/shr. Looks good to many current shareholders I would think.

    In summary, Chen has announced the acquisition of a $ 600 MM plus tech company today and that's money spent that isn't coming back with the risk of still carrying debt. It's a mixed blessing and requires that you believe in BlackBerry as a growth story here and maybe that is why some are getting out. If they buy shares and fail to attract business, the debt remains at a lower cash level. I'm just trying to think of all possible negatives here as this is one big decision on Chen's part. Let's bottom out and get back over $ 10.00 please. Hate to say it but I added at $ 9.73/shr.
    Last edited by morganplus8; 06-23-17 at 09:58 AM.
    06-23-17 09:25 AM
  4. ZayDub's Avatar
    Bought back half of what I sold yesterday. Waiting to buy rest when it finds a bottom. I've said it before, I love the company, hate the stock.
    Wishing I had done the same w/ my shares owned at 10 and 11
    06-23-17 09:37 AM
  5. Corbu's Avatar
    This.

    On the Professional Services misunderstanding, etc.

    McCreath: BlackBerry's Chen knows what he's doing - Video - BNN
    06-23-17 09:38 AM
  6. kellyweng88's Avatar
    man today is really sucking so far. almost back at breakeven...
    06-23-17 09:49 AM
  7. ZayDub's Avatar
    Added some more down here also. 12% haircut seems waaaaaaay overdone. Cost basis still in high 7s
    06-23-17 09:58 AM
  8. masterful's Avatar
    I am really curious to know who did they acquired... this to me like the makes a or break decision and I love to know the stories and synergies behind it.
    06-23-17 10:03 AM
  9. kellyweng88's Avatar
    did Chen announce the acquisition during the Q&A? I must've missed it?
    alludba likes this.
    06-23-17 10:09 AM
  10. randall2580's Avatar
    Finally starting to see some flash bids come in. I'm still wrapping my head around their announcement that they are acquiring a decent sized tech company. That share buyback plan is a big one, you always want them to buy shares at the best price and not pay a 60% premium on an acquisition so why not BlackBerry? Chen can't wipe out the debt and he wants to protect Prem so he goes into the market for an over $ 600 MM acquisition. The scary part in all of this is that it sets BBRY up as an acquisition itself as the growth in this name is becoming clear that it is going to happen post stock acquisition now. I think there are a number of companies that would consider buying it as it sits today at $ 16.00/shr. Looks good to many current shareholders I would think.

    In summary, Chen has announced the acquisition of a $ 600 MM plus tech company today and that's money spent that isn't coming back with the risk of still carrying debt. It's a mixed blessing and requires that you believe in BlackBerry as a growth story here and maybe that is why some are getting out. If they buy shares and fail to attract business, the debt remains at a lower cash level. I'm just trying to think of all possible negatives here as this is one big decision on Chen's part. Let's bottom out and get back over $ 10.00 please. Hate to say it but I added at $ 9.73/shr.
    Chen stated that at least part of the acquisition is to offset new shares that would be generated by his executive compensation plan and the risk of new shares generated by the debenture program. As long as the stock hovers around $10 these will have a dilution effect unless he takes steps like this.

    Agreed he's protecting Prem here. And us :-)
    06-23-17 10:30 AM
  11. Corbu's Avatar
    Amber should make us feel better...

    BlackBerry aiming to be pure-play cybersecurity firm: Chen - Video - BNN

    BlackBerry CEO John Chen sits down with BNN's Amber Kanwar for a look at the company's first-quarter results and its plans to transition into a pure-play cybersecurity firm.
    06-23-17 10:40 AM
  12. app_Developer's Avatar
    I can't watch that at work because of Flash. Did he describe what "pure-play cybersecurity" means? Is that a substantive change in direction at all or just new words/spin?

    Curious what you thought about this interview.
    06-23-17 10:43 AM
  13. morganplus8's Avatar
    Chen stated that at least part of the acquisition is to offset new shares that would be generated by his executive compensation plan and the risk of new shares generated by the debenture program. As long as the stock hovers around $10 these will have a dilution effect unless he takes steps like this.

    Agreed he's protecting Prem here. And us :-)
    He has protected Prem in a big way for years now! You are also right, he has in turn protected BB shareholders as well.

    So here is my problem, he also stated that it's part of a three year program to purchase shares to offset the bond issue. He was allowed only 31 MM shares for the next 12 months so he will be lobbying for as much as 40 MM additional shares, that's as much as $ 750 MM in cash that you have to take off the books today. In addition, he is liable to purchase back those bonds when they come due so you have to allot $ 605 MM plus for those too. That doesn't leave much room for M&A activity does it? He either feels strongly that retiring shares will be his best possible use for that money or he is prepared to see the stock below $ 10.00 when the bonds come due and will deal with that issue when its time. I think he is sending out a confusing message to Funds who buy and hold for at least 5-years. They can't plan for BBRY as an investment when the cash on hand is suddenly spoken for. It's one of those sell now and ask questions later deals for them.

    I wish he would talk about the share buyback plan, is he so confident that the stock will be much higher that he feels compiled to buy shares today? Let's hope this is the reasoning for this big announcement. Quite frankly, I don't think that anyone cares if the bonds exercise or not.

    As for the ER, it isn't a bad ER as software sales including QNX are solid there but it is a big mistake not to pre-announce a material change in the companies forecast for Q1 when you know there is a $ 20 MM hit to earnings all along and you held that info back until reporting day. That is not good business practice and it invites lawsuits.

    On the charts we turned the corner and finally have the base needed for a rally off the lows now. Hopefully we aren't as bad as AAPL and spend our time outside the BB Bands for 6 straight days.
    06-23-17 10:53 AM
  14. randall2580's Avatar
    On the conversation with Amber, Chen said "people don't listen to us when we talk. We had 21 million of professional services we said would not be recurring but they put them in there anyway" (my paraphrase, best I can remember it).

    One nice thing Amber got him to do was quantify QNX for the quarter, about 35 million if memory serves. She told him folks expect BlackBerry to be a "pure car play" and that's when he spoke about being a cyber security play for EOT (Enterprise of Things - part of IOT).

    He stressed over and over that new products would generate new income for the 2nd half of the fiscal year and he was very confident of his estimates for the year
    06-23-17 11:19 AM
  15. W Hoa's Avatar
    As stock drops, Blackberry CEO says he has a big 'break out' plan to buy up companies

    "We will be doing acquisitions," Chen told "Squawk Alley" on Friday. "If you follow the company for a while, you know that we are about to break out and do some investment in growth. That's part of our big plan here."

    Blackberry CEO John Chen discusses BBRY Q1 earnings, stock
    06-23-17 11:22 AM
  16. Bacon Munchers's Avatar
    Speaking of Law suits, I wonder if Chen is bolstering his seemingly risky behavior in the fact that they stand to win big in the Avaya suit...
    kellyweng88, sidhuk, Corbu and 1 others like this.
    06-23-17 11:40 AM
  17. farmwersteve's Avatar
    Added some more down here also. 12% haircut seems waaaaaaay overdone. Cost basis still in high 7s
    Speaking of haircut, things can still get worse for me... I'm reading this in the waiting room at First Choice hair cutters.
    Corbu, rarsen, Superfly_FR and 1 others like this.
    06-23-17 11:58 AM
  18. Rico4you's Avatar
    Speaking of Law suits, I wonder if Chen is bolstering his seemingly risky behavior in the fact that they stand to win big in the Avaya suit...
    Another Qualcomm / Avaya cash in for next quarter?! What a trend this would be. Who's next? I feel it's a great time to buy.

    Posted via CB10
    06-23-17 12:02 PM
  19. Corbu's Avatar
    06-23-17 12:04 PM
  20. Corbu's Avatar
    I can't watch that at work because of Flash. Did he describe what "pure-play cybersecurity" means? Is that a substantive change in direction at all or just new words/spin?

    Curious what you thought about this interview.
    Sorry I could not get back to you earlier.

    I hope you'll be able to watch it later as it is always interesting to hear JC speak.

    As for the "pure-play cyber-security software" reference, in the context of a connected car discussion, he was asked by Amber if he viewed BBRY as becoming a connected car play. He answered that he would become a pure-play cyber-security firm and expanded on what that means.

    Edit: Apologies. Just noticed that randall had already replied with a detailed answer. Thanks mate.
    06-23-17 12:23 PM
  21. Corbu's Avatar
    Questions?

    By the way, guys, if you have any questions for BBRY's management - and I suspect you might have some after this morning's results - please post them before Monday 8 AM. Answers - as best as they can be obtained - will be shared a few days later.

    Great opportunity to get some things clarified, imo.
    06-23-17 12:40 PM
  22. Corbu's Avatar
    June 23, 2017

    James E Faucette

    BlackBerry Ltd

    Trouble Tracking Assets

    Stock Rating Industry View Price Target
    Equal-weight Cautious $10.00

    Additional disclosures around the software revenue for BlackBerry increased confusion (at least ours) to a soft top line performance in FQ1. Profitability continues to outperform, but questions remain as far as timing of ramp of new products and how FY18 software revenue targets will be achieved.

    Timing and magnitude of software growth remains difficult to gauge. Additional disclosures around the breakdown of BlackBerry software and services revenue cloud ability to determine the relative ranking of underlying growth drivers (particularly given the breakdown was not given on a quarterly basis for all of FY17). BlackBerry expects software and services growth to be driven by four factors: 1) unified employee management (e.g. enterprise software), 2) embedded software (e.g. QNX / autos), 3) IoT (e.g. RADAR), 4) technology licensing (e.g. monetization of IP). However, which of these will be the primary driver remains a question as new marquee RADAR / QNX wins may take longer to accelerate into meaningful revenue than market had expected/hoped and the underlying enterprise software business (on a non-GAAP basis) does not appear to be growing.

    Ability to meet profitability targets remains impressive, but likely need to grow opex. BlackBerry reported FQ1 non-GAAP revenue / EPS of $244mm / $0.02 vs. expectations of $262mm / $0.01. While top line performance was not as strong as expected (largely due to legacy handset business transition), earnings outperformed as the company continued to exhibit strong opex control (aided by a reduction in legal expenses). The company expects FQ1 to represent a low point in opex as the begin to invest in sales and research & development resources for their new RADAR / QNX initiatives. Growth in gross margins due to the ongoing software transition should help offset the impact of this opex growth.

    Announced share repurchases show power of balance sheet. BlackBerry also announced a 31mm share repurchase Friday (~6% of the public float) to offset the potential dilution from their outstanding convertible bond. With ~$2.6bn cash and cash equivalents ($1.9bn net) post the Qualcomm settlement, the company has significant flexibility to invest in internal resources, inorganic opportunities and buybacks (~$3.5/share of net cash).

    Price target and estimates under review. Our $10 price target is 3.5 - 4.0x our FY19 base case software revenue as the company continues to make software acquisitions while preserving its net cash balance (plus $2 from arbitration). Multiple is in-line with software peers on a growth basis.

    Key risks to our price target include insufficient operating expense cuts draining the cash balance, a major acquisition that burns cash without adding value, and a multiple re-rating if the company can only resell acquired company software.
    06-23-17 12:49 PM
  23. Rico4you's Avatar
    Questions?

    By the way, guys, if you have any questions for BBRY's management - and I suspect you might have some after this morning's results - please post them before Monday 8 AM. Answers - as best as they can be obtained - will be shared a few days later.

    Great opportunity to get some things clarified, imo.
    Hello

    Awesome we can ask questions.
    My question is the following:
    BlackBerry has always been historically leader in R and D. Q1 17 saw 89 and concerned with downward trend Q1 18 61. Will we see now a turnaround on this line?
    Thank you @Rico4you
    06-23-17 12:59 PM
  24. ZayDub's Avatar
    Speaking of haircut, things can still get worse for me... I'm reading this in the waiting room at First Choice hair cutters.
    I hope that at least something goes positive for you today! If we look good, we feel good!
    06-23-17 01:01 PM
  25. Superfly_FR's Avatar
    Hey guys, been in a white room all day.
    Thanks for all the summaries and explanations ... got to read it sideways as I must now leave.
    Hope everybody's been cautious, as always, let's see how the dust settles.
    GL to all !
    SF
    06-23-17 01:03 PM
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