BlackBerry (BB.TO)

(Market Call Minute.) Speculative value could be enormous. Doesn’t know if they will ever attract a buyer.

Has been in a downtrend but is attempting to break the downtrend line. There is a neckline happening at around $8.20. In late June, there was a gap down from $9 down to around $8. If we break this neckline this would penetrate that longer down trend line and an area of consolidation. If this happened, as a speculative position, you could bet that it will fill the gap up to around $9 and possibly be short-term bullish for the stock. Do not look at this unless it breaks through $8.20.

One of these companies that doesn't pay a dividend so it is hard to say it is worth X Y or Z. He likes to use dividends as a benchmark for valuation. With RIM you are looking for BB10. He goes with stocks that pay a dividend.

Feeling a bit more comfortable about this company but is still not ready to take a position. Results were better than expected. Built up their cash by reducing inventories during the quarter so with the introduction of BB10, they are going to have to start building those inventories back up again so the cash drain you are going to see in the upcoming quarter is what he had anticipated for the previous quarter. Worth watching. Would also like to have tax loss season behind him first.

Looking at this is one very, very closely. Had a good run and is up 6 days in a row. Didn’t have great results this past quarter. Lost an awful lot of money but many analysts perceived they would lose that much more so they think that is a good sign. Hearing both good things and criticisms about the future release coming out in the new year.

He is focusing most of his attention these days on dividend stocks. Looking at the chart, technically, maybe it is worth a shot here. You could probably buy it but you are taking a risk. Liked the last quarter.

He is focusing most of his attention these days on dividend stocks. Looking at the chart, technically, maybe it is worth a shot here. You could probably buy it but you are taking a risk. Liked the last quarter.

Execution has been the real problem with this company. They keep pushing the BlackBerry 10 off but they are missing the key holiday season.

Losing market share hand over fist. However, there is value in the stock but he can’t see it. Some experts have been nibbling.

Failure with them was that they were an enterprise company and made a utilitarian product for the enterprise and then tried to make something cool for the retail environment but it didn’t work. This is very much of a “show me” story. New product next year has to consolidate that presence and that’s the only thing that is going to save them.

Smart phone market share is down to 4.8% from 11.5% in the 2^nd quarter of 2011. This company is falling further and further behind. While they are working on their new phone, Apple’s iPhone 5 is coming out and there are a whole bunch of new Android devices that have come out. Microsoft with its Windows 8 platform is going to take market share from everybody he suspects.

Really good balance sheet with a lot of cash. Has been watching the “cash burn” through the last 2 or 3 quarters and, if anything, there has been some cash accretion because of a terrific cash flow. Secondly they are holding onto the critical part of their subscriber base, the corporate side. Expects there is a huge pent-up demand for the blackberry 10. If you have concerns, consider buying in phases throughout the next 6 months or so. Wouldn’t be surprised to see it at $20 or much higher a year out.

Why is it down? It is in the tech sector. If it were friendlier to shareholders maybe it would not be where it is today. It is beyond traditional analysis. The patent portfolio may have more value.

Hasn’t owned this for quite a while now. Concerned about some of the things that have evolved. Have to prove that they are not going out of business. Real threat comes in the next 2 quarters as we see the impact of them losing share to Android and the Galaxy product, which was well received. There is also the iPhone 5 and Windows 8 in the next quarter.

They are starting to go through their cash. Biggest worry for analysts is that they will run out before someone comes in and does something. There is not a price she would be comfortable in buying the stock at. It is a very speculative situation. She has one from 5-6 years ago and it is indestructible. She would have to wait for the keyboard version of the next model personally. She is therefore worried about the sales of the new product. RIM has a lot going for it and some day there will be some kind of corporate activity. Wait until Nov/Dec if you want to buy.