1. sungay's Avatar
    http://qz.com/272530/blackberry-endgame/

    Excerpt:
    Now under turnaround management, BlackBerry is looking for an exit. John Chen, the companys new CEO, comes with a storied rsum that includes turning around database company Sybase and selling it to SAP in 2012. Surely, such an experienced executive doesnt believe that the new keyboard-based BlackBerry Passport (or its Porsche Design sibling) can be the solution.

    Beyond serving the needs or wants of diehard keyboard-only users, its hard to see the Passport gaining a foothold in the marketplace. Tepid reviews dont help (The Passport just doesnt offer the tools I need to get my work done); Android compatibility is a kludge; developers busy writing code for the two leading platforms wont commit.

    Chen, never departing from his optimistic script, touts BlackBerrys security, Mobile Device Management, and the QNX operating system licenses for embedded industry applications.

    None of this will move the needle in an appreciable way. And, because BlackBerrys future is seen as uncertain, corporate customers who once used BlackBerrys communication, security, and fleet management services continue to abandon their old supplier and turn to the likes of IBM and Good Technology.

    The company isnt in danger of a sudden financial death: Chen has more than $3 billion in cash at his disposal and the company burns about $35 million of it every quarter. BlackBerrys current stock price says the company is worth about $5 billion, $2 billion more than its cash position. Therefore, Chens endgame is to sell the company, either whole or, more likely, in parts (IP portfolio, QNX OS) for more than $2 billion net of cash.

    Wall Street knows this, corporate customers know this, carriers looking at selling Passports and some services know this. And potential body-parts buyers know this as welland wait.

    Its not going to be pretty.
    09-28-14 07:27 PM
  2. AnimalPak200's Avatar
    Amazingly narrow-minded (and dated) look at today's BlackBerry,.. I'm just amazed that the past four (or six) devices have been "BlackBerry's desperate last ditch effort."
    09-28-14 07:34 PM
  3. lnichols's Avatar
    I do believe that the end game for Chen and Prem is to sell the company. This was what they wanted Thor to do, but he made the company so undesirable Prem would have lost money so no sale. I'm sure that if Chen gets the value to a point where Prem would make a profit, the company will be sold.

    Posted with a BlackBerry Z10
    reeneebob likes this.
    09-28-14 07:43 PM
  4. A_Aviator_A's Avatar
    1 in 4 shares of BB is shorted. To me that reads that they will have to be re-bought at some point as those who bet against RIM now need to cover those shorts. Wallstreet also knows this. There is significant vested interest in Blackberry's failure. Blackberry's cash position is 3.1 billion. At a 5.2 billion valuation and 900 million a quarter in revenue you're looking at a valuation based on an earnings multiple of: (5.2-3.1)/(0.9*4 Q's) = 0.58. This is ridiculously low valuation for a company that has no debt whatsoever.

    The main goal here is to not bleed any more cash in the short term and stabilize revenue. Once that happens then the company can look into future sustainability of their current revenue streams. The biggest negative for Blackberry is the uncertainty of their growth models amidst present and future competition. Can they keep their market or is APPLE and ANDROID just going to take over enterprise? This is the only question whos answer will directly impact Blackberry's future. Why have a fire-sale on IP? The current approach seems to be more advantageous for shareholders.

    My $0.02.
    Jim Banks2 and lift like this.
    09-28-14 07:51 PM
  5. Jim Banks2's Avatar
    I think they have actually turned a corner. They just need to come out with updated devices a little quicker now. ie the Q10 and Z10 both need to be updated. The app shortage is almost non-existant now and the operating system itself is actually much nicer than both apple and android. They just need to hang on now and keep steadily getting better. There is actually too much wrong with the article to even bother mentioning all of it.

    What kind of world do we live in where a company with nearly a billion dollars in sales can't make a go of it....
    Andy_bb_king likes this.
    09-28-14 08:56 PM
  6. nogutsnoglory's Avatar
    Actually this is a pretty fair assessment. BBY simply cannot compete with Apple or Android. Ex. Apples sells 10,000,000 iPhone 6 phones in 3 days. BBY Passport sells 200,000 in the same time (which was probably more than expected). I wish it wasn't the case but I feel BBY is and has been buying time for a sale. The fact that they could attract a buyer in the last few years illustrates just how bad it has gotten with this brand. Stock may be up 40% YTD but the numbers don't lie. It really is just a matter of time before BBY is sold.
    lift likes this.
    09-28-14 09:03 PM
  7. grover5's Avatar
    Actually this is a pretty fair assessment. BBY simply cannot compete with Apple or Android. Ex. Apples sells 10,000,000 iPhone 6 phones in 3 days. BBY Passport sells 200,000 in the same time (which was probably more than expected). I wish it wasn't the case but I feel BBY is and has been buying time for a sale. The fact that they could attract a buyer in the last few years illustrates just how bad it has gotten with this brand. Stock may be up 40% YTD but the numbers don't lie. It really is just a matter of time before BBY is sold.
    They just need to make money and have their own client base. Your post seems nonsensical. I'm not currently a BB user but I can see a turnaround has occurred.

    Posted via CrackBerry App
    09-28-14 09:13 PM
  8. THBW's Avatar
    This guy is completely clueless, not to mention, he has no understanding of finance.

    BlackBerry is basically in a zero burn state as we speak. With the exception of a one time debenture charge, BlackBerry lost 11 million dollars. This is due to the fact that fat has been cut, inventory has been risk controlled and corporate energy has been focused.

    So going forward, I will come right out and say it. You would have to be a complete moron to bet against BlackBerry at this point in time. Maybe 2 years ago you could make an argument but not today.

    Let's start with BES. It is simply the best in class MDM solution. Let's face it, there is nothing else of similar quality or cost effectiveness. 3.4 million EZ passes tells you everything and those free licenses start turning to real revenue in the next 4 months. The is solid consistent income coming in the door. Next you have eBBM adding to revenue and BlackBerry is now poised to offer its secure cloud solution this fall. Add to this, BBM on the consumer side whose services and advertising are predicted to bring in 100 million a year. Then there is QNX car system that is also best in class. QNX and the IoT has real promise and BlackBerry is well positioned to make it a reality.

    The weak spot for BlackBerry has traditionally been hardware but this too has changed in the last 6 months . Device inventory is tightly controlled and sales are at the break even point. Given the strong response to the passport, it is pretty clear BlackBerry will start making real dollars in the very near future. Add to that the highly anticipated BlackBerry classic.

    The Days of asking whether BlackBerry will make it are long gone. The revenue engines are primed and ready to go. The question now is how profitable it will be. As to selling BlackBerry, all I can say is that the author is dreaming. The sale time was 18 months ago and Prem Wasa was pretty clear in saying no to offer after offer. It is not how he does business and anyone who carefully follows his career knows this.

    The author also appears to be completely clueless to the fact that even Wall Street is waking up and putting venture capital dollars into BlackBerry. These guys are now betting on a successful turn around. That is the current state of affairs.




    Posted via CB10
    09-28-14 09:24 PM
  9. zocster's Avatar
    It's the internet, you can agree with what you see and read or not. Make sure though you discuss the topic, not the poster.
    09-28-14 09:28 PM
  10. dbmalloy's Avatar
    Depends on what field BB is competing.... if you are talking about the consumer market... it is game over.... Apple and Sammy will evenutally fall as all other before them... just look at history... Someone more innovative.... or market shift ... an never ending business cycle.... Where BB can compete is in the Enterprise market... which again, many treat as a monolith... it is not.... the challenge to BB is that they have a broad spectrum of products and services provided by different companies.... In the MDM field you have many competitors..... In the security market they have many competitiors and in Hardware the same.... The first two BB excells..... the hardware not so much but getting better.... As for selling the company... may be more difficult that most realize.... Canadian governent has the final say on any sale of BB.,.,., depending on the political climate after the next election as sale of a major Canadian tech company could be a hard sell... When Biltion Potash of Australia tried to buy Canada's larget Potash company the sale was blocked..... even though it was lucrative and many guarantees for the Canadian company..... That deal was many fold more expensive as to what BB could sell for..... Interesting time ahead....
    09-28-14 09:34 PM
  11. world traveler and former ceo's Avatar
    Most of these "analysts " or "writers" are clueless incompetent morons.. i would not trust them to park my expensive...

    Porsche lol...

    ... BlackBerry ceo Chen is a very smart and capable leader and Blackberry is moving forward as we speak...

    Oh and yes, the Passport will be the most I innovative smartphone of 2014....



    Posted via CB10
    Andy_bb_king likes this.
    09-28-14 10:16 PM

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