Will BlackBerry Find Support?
With shares of BlackBerry (NASDAQ:BBRY) trading around $7, is BBRY an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
BlackBerry is a designer, manufacturer, and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software, and services, it provides platforms and solutions for seamless access to information such as email, voice, instant messaging, SMS, Internet, intranet-based applications, and browsing. Its products and services feature the BlackBerry wireless solution, the Research In Motion Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools, and other software and hardware.
BlackBerry’s CEO, John Chen, announced he is looking to take the company out of the handset business if the device will not bring the company revenue. ”If I cannot make money on handsets, I will not be in the handset business,” Chen told Bloomberg. When handsets were in greater demand BlackBerry shipped 52.3 million devices in fiscal 2011, while recording less than $2 million in revenue last quarter. ”I don’t have a plan to get rid of handsets, I have a plan to not be dependent on handsets,” Chen said. “All I need to do is replace the handset revenue, and this company will be very different.”