BlackBerry (BB.TO)

BB is slowly becoming irrelevant. It hasn't made money since 2015, and its large cash balance is gone. Cash flow was negative $263M last year. Sales continue to decline, and it missed its sales estimate last quarter. BlackBerry's sales should remain volatile as it separates its Cybersecurity unit from its higher-growth Internet of Things (IoT) segment, with disruption likely to result. Revenue may expand at an average annual rate of 3.1% in fiscal 2024-27, based on estimates. The higher growth potential of IoT vs. the Cybersecurity unit could prompt a spinoff of the former, allowing investors to tap IoT's sales growth exclusively. High-margin licensing fees have fallen to an annual run rate of about $20 million following the sale of most of the patent portfolio. The resulting margin pressure is likely to abate as QNX and other profitable new offerings pick up. Overall, while its technology may still have promise, it has over the past decade destroyed shareholder value, with management changes adding more uncertainty. It is vey hard to endorse. 
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He's seen, but hasn't analyzed, today's announcement of a split. It's a shame that the company was a substantial winner, but now is an also-ran. A trade story. Ask yourself if the split creates value and an enhanced opportunity? Often the pieces spun out do better.

The guidance was weak, and BB faces numerous challenges. But the company is still undergoing a strategic review, following overtures for a takeover. This remains a possibility, but it is hard to endorse on that alone. Fundamentals remain weak and much worse than expected. The balance sheet is OK but its large cash cushion is gone. Cash flow has been negative the past two years. Speculative as a possible takeover, but not really endorseable as a long term holding right now. 
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Not a good time to buy shares with recent under performance of tech & hardware.
Revenues down to record low.
Shifting to cyber security business units. 
Unprofitable 9 out past 10 years.
Would not invest. 
Too difficult to tell future of business. 

BB is now trading at 4.4x times' Price/Sales. In 4Q-2023, the company’s revenue declined by -18.4% to $151M, in line with the estimates and EPS is -$0.02, beating estimates of -$0.07. The balance sheet is okay, with net debt of $17M. However, the trailing twelve-month cash flow is concerning, as the company generated -$263M. 

The company announced a strategic reveiw which has given shares some support but we wouldn't view it as coming from a posiiton of strength and are not sure we see a whole lot of reason to be excited here. 
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Don't buy shares.
Company has had better days.
Trajectory downward.
Tech not good anymore.

Results have been sporadic for a number of years.
Hard company to model going forward.
Better names to own in the tech sector (predictable earnings).
Not a strong business for the past 10 years.
Customers turning over etc.