1. JasW's Avatar
    Interesting insights from Floyd Norris in today's Times, not into how BBRY screwed up changing with the times, but how BBRY screwed over shareholders. Kinda makes you feel sorry for the saps in the "I Support BBRY I Buy Shares" thread. Well, not really.

    HIGH & LOW FINANCE
    How BlackBerry Handled Past Wealth
    How BlackBerry Handled Past Wealth [NY Times column]-norris-articlelarge.jpg
    BlackBerrys annual meeting in Waterloo, Ontario, in July. The expectation is that the company will be acquired for its cash and
    patents while the product responsible for its success will vanish.

    By FLOYD NORRIS
    Published: August 22, 2013


    It started in an unlikely place, far from the headquarters of more established technology companies, and grew to become a dominant player. Along the way, investors piled in, undeterred by the companys policy of never paying a dividend.

    But then the technology changed, and the company struggled to keep up. Eventually it realized it could not continue as it was. It was broken up and acquired, with investors receiving a fraction of what their shares had been worth at the peak.

    That was the story of the Digital Equipment Corporation, which was based in a former textile mill in Maynard, Mass., and became the second-largest computer company in the world in the 1980s. In 1998, it was acquired by Compaq, a maker of personal computers that had destroyed Digitals business in mini computers. It proved to be a poor deal for Compaq, which itself was acquired later by Hewlett-Packard.

    A year before Digital was acquired, a small mobile technology company based in Waterloo, Ontario, went public on the Canadian market. In 1999, it listed on Nasdaq and became a phenomenon. It was called Research in Motion until this year, when its corporate name was changed to that of its primary product, BlackBerry.

    Now it seems as if BlackBerry will follow the Digital Equipment path. It has hired bankers to pursue its strategic options, and the expectation is that it will be acquired for its cash and patents while the product that made it rich and famous will gradually vanish.

    Digital left behind a large number of technology companies in Massachusetts, some of which flourished in the very mill that Digital made famous. BlackBerrys impact on Waterloo seems likely to be similar.

    This column is not about the changing technology that caused the decline of BlackBerry, which by now is well known. Instead, it is about the way the company handled prosperity when profits were plentiful a way that served BlackBerry executives well and that pleased Wall Street but provided no benefits to loyal shareholders.

    BlackBerrys corporate filings show that over the years it distributed $3.5 billion to shareholders. (Although BlackBerry is based in Canada, it keeps its books in United States dollars and that number, like all others in this column, is in United States currency.) That is an impressive amount, especially considering that the entire company is now worth only a little more than $5 billion.

    But loyal shareholders did not receive any of that money. To get the money, an investor had to sell. The money was spent on share buybacks, and most of those buybacks came in 2008 and 2009, when the company was flying high.

    BlackBerrys financial strategy was not particularly unusual, although it does stand out in the way it abused the rules on executive stock options. Perhaps it would never have paid dividends anyway, but those options gave the companys executives good reasons to avoid dividends and concentrate on share buybacks.

    The result was a classic sell low and buy high strategy, one that did wonders for the executives.

    . . .


    Read more at http://www.nytimes.com/2013/08/23/bu...pagewanted=all
    danprown likes this.
    08-23-13 07:01 AM
  2. qbnkelt's Avatar
    Interesting insights from Floyd Norris in today's Times, not into how BBRY screwed up changing with the times, but how BBRY screwed over shareholders. Kinda makes you feel sorry for the saps in the "I Support BBRY I Buy Shares" thread. Well, not really.

    HIGH & LOW FINANCE
    How BlackBerry Handled Past Wealth
    Click image for larger version. 

Name:	Norris-articleLarge.jpg 
Views:	691 
Size:	33.2 KB 
ID:	195103
    BlackBerry’s annual meeting in Waterloo, Ontario, in July. The expectation is that the company will be acquired for its cash and
    patents while the product responsible for its success will vanish.

    By FLOYD NORRIS
    Published: August 22, 2013


    It started in an unlikely place, far from the headquarters of more established technology companies, and grew to become a dominant player. Along the way, investors piled in, undeterred by the company’s policy of never paying a dividend.

    But then the technology changed, and the company struggled to keep up. Eventually it realized it could not continue as it was. It was broken up and acquired, with investors receiving a fraction of what their shares had been worth at the peak.

    That was the story of the Digital Equipment Corporation, which was based in a former textile mill in Maynard, Mass., and became the second-largest computer company in the world in the 1980s. In 1998, it was acquired by Compaq, a maker of personal computers that had destroyed Digital’s business in mini computers. It proved to be a poor deal for Compaq, which itself was acquired later by Hewlett-Packard.

    A year before Digital was acquired, a small mobile technology company based in Waterloo, Ontario, went public on the Canadian market. In 1999, it listed on Nasdaq and became a phenomenon. It was called Research in Motion until this year, when its corporate name was changed to that of its primary product, BlackBerry.

    Now it seems as if BlackBerry will follow the Digital Equipment path. It has hired bankers to pursue its “strategic options,” and the expectation is that it will be acquired for its cash and patents while the product that made it rich and famous will gradually vanish.

    Digital left behind a large number of technology companies in Massachusetts, some of which flourished in the very mill that Digital made famous. BlackBerry’s impact on Waterloo seems likely to be similar.

    This column is not about the changing technology that caused the decline of BlackBerry, which by now is well known. Instead, it is about the way the company handled prosperity when profits were plentiful — a way that served BlackBerry executives well and that pleased Wall Street but provided no benefits to loyal shareholders.

    BlackBerry’s corporate filings show that over the years it distributed $3.5 billion to shareholders. (Although BlackBerry is based in Canada, it keeps its books in United States dollars and that number, like all others in this column, is in United States currency.) That is an impressive amount, especially considering that the entire company is now worth only a little more than $5 billion.

    But loyal shareholders did not receive any of that money. To get the money, an investor had to sell. The money was spent on share buybacks, and most of those buybacks came in 2008 and 2009, when the company was flying high.

    BlackBerry’s financial strategy was not particularly unusual, although it does stand out in the way it abused the rules on executive stock options. Perhaps it would never have paid dividends anyway, but those options gave the company’s executives good reasons to avoid dividends and concentrate on share buybacks.

    The result was a classic “sell low and buy high” strategy, one that did wonders for the executives.

    . . .


    Read more at http://www.nytimes.com/2013/08/23/bu...pagewanted=all
    Oh boy.....this will be interesting.....
    08-23-13 07:23 AM
  3. lnichols's Avatar
    That $3.5 Billion in stock buybacks could have been used to get BB10 here quicker, advertise it, and maybe make it successful. Now someone else will need to buy the company for BB10 to live on in some way. Sad to watch this play out over 5 to 6 year span of time.
    08-23-13 11:07 AM
  4. birdman_38's Avatar
    Interesting insights from Floyd Norris in today's Times, not into how BBRY screwed up changing with the times, but how BBRY screwed over shareholders. Kinda makes you feel sorry for the saps in the "I Support BBRY I Buy Shares" thread. Well, not really.

    HIGH & LOW FINANCE
    How BlackBerry Handled Past Wealth
    Click image for larger version. 

Name:	Norris-articleLarge.jpg 
Views:	691 
Size:	33.2 KB 
ID:	195103
    BlackBerrys annual meeting in Waterloo, Ontario, in July. The expectation is that the company will be acquired for its cash and
    patents while the product responsible for its success will vanish.

    By FLOYD NORRIS
    Published: August 22, 2013


    It started in an unlikely place, far from the headquarters of more established technology companies, and grew to become a dominant player. Along the way, investors piled in, undeterred by the companys policy of never paying a dividend.

    But then the technology changed, and the company struggled to keep up. Eventually it realized it could not continue as it was. It was broken up and acquired, with investors receiving a fraction of what their shares had been worth at the peak.

    That was the story of the Digital Equipment Corporation, which was based in a former textile mill in Maynard, Mass., and became the second-largest computer company in the world in the 1980s. In 1998, it was acquired by Compaq, a maker of personal computers that had destroyed Digitals business in mini computers. It proved to be a poor deal for Compaq, which itself was acquired later by Hewlett-Packard.

    A year before Digital was acquired, a small mobile technology company based in Waterloo, Ontario, went public on the Canadian market. In 1999, it listed on Nasdaq and became a phenomenon. It was called Research in Motion until this year, when its corporate name was changed to that of its primary product, BlackBerry.

    Now it seems as if BlackBerry will follow the Digital Equipment path. It has hired bankers to pursue its strategic options, and the expectation is that it will be acquired for its cash and patents while the product that made it rich and famous will gradually vanish.

    Digital left behind a large number of technology companies in Massachusetts, some of which flourished in the very mill that Digital made famous. BlackBerrys impact on Waterloo seems likely to be similar.

    This column is not about the changing technology that caused the decline of BlackBerry, which by now is well known. Instead, it is about the way the company handled prosperity when profits were plentiful a way that served BlackBerry executives well and that pleased Wall Street but provided no benefits to loyal shareholders.

    BlackBerrys corporate filings show that over the years it distributed $3.5 billion to shareholders. (Although BlackBerry is based in Canada, it keeps its books in United States dollars and that number, like all others in this column, is in United States currency.) That is an impressive amount, especially considering that the entire company is now worth only a little more than $5 billion.

    But loyal shareholders did not receive any of that money. To get the money, an investor had to sell. The money was spent on share buybacks, and most of those buybacks came in 2008 and 2009, when the company was flying high.

    BlackBerrys financial strategy was not particularly unusual, although it does stand out in the way it abused the rules on executive stock options. Perhaps it would never have paid dividends anyway, but those options gave the companys executives good reasons to avoid dividends and concentrate on share buybacks.

    The result was a classic sell low and buy high strategy, one that did wonders for the executives.

    . . .


    Read more at http://www.nytimes.com/2013/08/23/bu...pagewanted=all
    Interesting.

    I have nothing to add. Just wanted to quote this extremely long post, lol.
    08-23-13 11:09 AM
  5. deremi's Avatar
    Interesting.

    I have nothing to add. Just wanted to quote this extremely long post, lol.
    Ditto.
    08-23-13 11:14 AM
  6. deremi's Avatar
    Interesting insights from Floyd Norris in today's Times, not into how BBRY screwed up changing with the times, but how BBRY screwed over shareholders. Kinda makes you feel sorry for the saps in the "I Support BBRY I Buy Shares" thread. Well, not really.

    HIGH & LOW FINANCE
    How BlackBerry Handled Past Wealth
    Click image for larger version. 

Name:	Norris-articleLarge.jpg 
Views:	691 
Size:	33.2 KB 
ID:	195103
    BlackBerry’s annual meeting in Waterloo, Ontario, in July. The expectation is that the company will be acquired for its cash and
    patents while the product responsible for its success will vanish.

    By FLOYD NORRIS
    Published: August 22, 2013


    It started in an unlikely place, far from the headquarters of more established technology companies, and grew to become a dominant player. Along the way, investors piled in, undeterred by the company’s policy of never paying a dividend.

    But then the technology changed, and the company struggled to keep up. Eventually it realized it could not continue as it was. It was broken up and acquired, with investors receiving a fraction of what their shares had been worth at the peak.

    That was the story of the Digital Equipment Corporation, which was based in a former textile mill in Maynard, Mass., and became the second-largest computer company in the world in the 1980s. In 1998, it was acquired by Compaq, a maker of personal computers that had destroyed Digital’s business in mini computers. It proved to be a poor deal for Compaq, which itself was acquired later by Hewlett-Packard.

    A year before Digital was acquired, a small mobile technology company based in Waterloo, Ontario, went public on the Canadian market. In 1999, it listed on Nasdaq and became a phenomenon. It was called Research in Motion until this year, when its corporate name was changed to that of its primary product, BlackBerry.

    Now it seems as if BlackBerry will follow the Digital Equipment path. It has hired bankers to pursue its “strategic options,” and the expectation is that it will be acquired for its cash and patents while the product that made it rich and famous will gradually vanish.

    Digital left behind a large number of technology companies in Massachusetts, some of which flourished in the very mill that Digital made famous. BlackBerry’s impact on Waterloo seems likely to be similar.

    This column is not about the changing technology that caused the decline of BlackBerry, which by now is well known. Instead, it is about the way the company handled prosperity when profits were plentiful — a way that served BlackBerry executives well and that pleased Wall Street but provided no benefits to loyal shareholders.

    BlackBerry’s corporate filings show that over the years it distributed $3.5 billion to shareholders. (Although BlackBerry is based in Canada, it keeps its books in United States dollars and that number, like all others in this column, is in United States currency.) That is an impressive amount, especially considering that the entire company is now worth only a little more than $5 billion.

    But loyal shareholders did not receive any of that money. To get the money, an investor had to sell. The money was spent on share buybacks, and most of those buybacks came in 2008 and 2009, when the company was flying high.

    BlackBerry’s financial strategy was not particularly unusual, although it does stand out in the way it abused the rules on executive stock options. Perhaps it would never have paid dividends anyway, but those options gave the company’s executives good reasons to avoid dividends and concentrate on share buybacks.

    The result was a classic “sell low and buy high” strategy, one that did wonders for the executives.

    . . .


    Read more at http://www.nytimes.com/2013/08/23/bu...pagewanted=all
    doh!
    08-23-13 11:15 AM
  7. birdman_38's Avatar
    doh!
    Nice recovery
    08-23-13 12:28 PM
  8. birdman_38's Avatar
    Everyone should quote the original post in its entirety and reply with a one word answer.
    08-23-13 12:37 PM
  9. Josh Brolin's Avatar
    Nice article. Really shows how much bbry really cares about "those who support bbry and buy shares ". Retail investors are bbrys pawns. They dont mean anything to them except an way to line their own pockets.
    08-23-13 03:47 PM

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