Michael SprungBlackBerryBB.TOWATCHMar 28, 2016

Finally showing that the turnaround has real substance. Really likes the QNX, huge future royalty backlog from cars it's embedded in. Moving beyond cars into physical robotics and AI. Revenue grew 26% last quarter. Cash generation is moving in the right direction. Catalysts are very real.

Question is not whether turnaround is real. It's what price should you pay for it? Next reports on September 24 -- see if that confirms that growth is accelerating.

There are many years of negative return on capital. Doesn't see a turnaround.

Analysts are mixed across the board. Overvalued, even with the pullback. Turnaround story is very encouraging. Raised guidance. Cybersecurity and QNX exceeded expectations. She'd want to see stronger and more consistent growth. 

You could almost argue that it's an auto parts company, with its QNX operating system. Very-high-end encryption software. Transformation has taken place. Nice niche, but he struggles to understand its economic moat for either segment. 60x forward PE. Risk/reward is unattractive.

He wonders if people really want it to do well, and perhaps tend to pay a bit too much for it.

The RSI analysis at his shop is all about the price, using mainly point-and-figure charting that takes out some of the noise beyond just price moves. So he doesn't look at volume too much.

Very highly ranked within the Canadian RSI universe. Underlying trend positive. Rallying nicely since April. If you want to be in it, you have to learn to live with the fact that it's going to be more volatile.

They're in a good, but competitive business. Would like to learn more about it. Be cautious given the valuation.

Just reported outstanding results. Stock's up and that's fully warranted -- strong results, and increased guidance. Guidance implies accelerated growth in QNX. If it can continue to deliver results, will probably continue higher.

Security rollout and significant spike in deployments are both positive. Overriding challenge is that it's a fallen champion. Can't expect more upside. Needs to "show us the money", but consistently.

Technical situation has been positive from a trading perspective, marching higher since March. People don't understand the importance of its software in applications that can't afford to fail. Massive run in a short time.

Generating cash and some growth. A more speculative play in an important, growing area.

It's got interesting technology in the auto world. He's been looking at it. It got away from him and rose higher.

Now starting to take off. Transformed from phone maker to software company. Embedded auto software plus cybersecurity. Auto software is the story -- revenue grew, margins improved, stronger cashflow, good backlog, guidance higher than expected.

Is it a pure momentum name? Blown through all its targets. Might see a healthy pullback. Definitely take some profits. For the long term, core business model has changed. On her watchlist.

Hats off to them for their last quarter. They're moving into car security software seems to be gaining traction as earnings rise. It's had a good run recently and the PE has really expanded, but growth remains single digit. Interesting and one to watch, but volatile.

The stock has stabilized and their software is now being used in cars. Wants to see more sustainable growth to make a decision.

Effectively a security company now, and its security is very good. He'd want to see a few more years of substantial wins. He'd pass.

Interesting stock. YOY revenue growth of 15%. Price targets have moved up. Still some upside.