Heins couldn't stand the thought of having to deliver that bad news in person, so he issued a press release much like a d-bag would break up with his girlfriend over a text message.
It's brilliant but a tad sheisty.... Do it at the end of the day Friday so it's not in the news Monday. BBM will hopefully be released this weekend and create some positive news.
Also it could have been worse as they had changed their record keeping format and the real loss is only between $250-$265 mil (they still have $2.6 bil with no debt) and 2.8 mil BB10 devices sold is about on par with projections. I bet the stock goes up next week once people realize this.
Yeah that BBM rollout is going awesome : rolleyes. Monday this stock is going to drop like a brick based on the BBM failure and pre ER info making it cheaper for a buyer to acquire. Notice how everything done lately that could be good is either botched (BBM4None), or done quietly (Z30 launch event in Malaysia), or followed up with a bad press release (layoffs and the ER). Almost like they want to make sure the stock price stays low.
The thing I find odd is why they would change their accounting format so that a $250 mil loss looks like a $950 mil loss. It's hard not to believe Prem had some inside info that will help him get a good deal if he does make an offer.
I still have faith that something is in the works and we will see Prem make an offer of $15ish/share by November, or BlackBerry just sells it's hardware division with patents and a manufacturing deal to Lenovo.
I guess we found today out what drove the preliminary Q2 report. This is complete stock manipulation. TH should be thrown in jail. Instead he's gonna get $55 mil.
1) PW to TH: I can put an offer in but only $9 per share
2) TH: let me change revenue recognition procedures that artificially tank revs for the quarter along with earnings. This will also make it look like no bb10 phones sold. The stock will crater with the pre release.
3) PW: great, I'll put an offer in before earnings next week.
4) TH: you'll have to in order for analysts to not ask damning questions. Keep the questions on the buy out.
I guess we found today out what drove the preliminary Q2 report. This is complete stock manipulation. TH should be thrown in jail. Instead he's gonna get $55 mil.
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Agree 100%. There has to be a law that was broken here.
Here is my take, the BBRY numbers were so bad that they knew that their stock would take a massive hit once they do revealed at the earnings call. So they wanted for to temper expectations.
The other thing is that they were probably in intense negotiations with Fairfax. They needed to announce the layoffs to remove the financial obligation that comes with it from the new owners. And provide full financial disclosure before an offer could be made.
Without the bad news, I doubt that the $9 a share offer would have been feasible. But now given the bad news and the drop in the share price, it is an attractive offer which stands a before chance of being accepted.
My thinking is that they wanted to get the bad news out of the way, so that they would be able to focus on announcements such as BBM, the new Z30 and the offer of a buyout. Otherwise it would be dominated by their massive losses last quarter. By the time of the earnings call, that news would already be a week old.
