Bruce Murray
Research In Motion Ltd. (US)
BB-N
DON'T BUY
Jun 20, 2017
This was at the bottom, turned around and the stock is moving up and off the bottom. Valuation has been improving with their win over QUALCOMM (QCOM-Q). They are out of the phone business now, but are getting royalties if someone sells their phones. Getting some cachet in the automotive field. In security technology, sales are still declining, but cash flow is improving. There is still a lot of Hope built in, and it is selling at a higher price than what he would pay for it. He wouldn’t own this.
Very dominate position in smart phones. Roughly 50% of new business was consumers. Growing market share in both smart phones and world hand sets. Looking for a possibility of a multiple revision. One of the few spaces that is working really well.
New product is about $300 cheaper than Blackberry. Proprietary battery technology, radio frequency technology and ability to work with secure e-mail synchronized is going to be interesting. Could get to $150 in Jan/Feb. Only trades at 20X next year's earnings.
Top Short Sell a $70US June Call Option. Pairs trade. Trying to mitigate volatility and reduce risks. Willing to sell some of the upside potential in exchange for predictable income.
Could be a turn around story but he describes it as a barbell. Wait of technology on one end that was not well marketed and on the other side is the potential for them to come out with a new technology that is really good and well received. Sold it in late November.
This has had a great run recently. They have an incredible amount of intellectual property. There is some question that somebody else might like to own this company.
This was at the bottom, turned around and the stock is moving up and off the bottom. Valuation has been improving with their win over QUALCOMM (QCOM-Q). They are out of the phone business now, but are getting royalties if someone sells their phones. Getting some cachet in the automotive field. In security technology, sales are still declining, but cash flow is improving. There is still a lot of Hope built in, and it is selling at a higher price than what he would pay for it. He wouldn’t own this.