BlackBerry (BB-T)

For this one, he's looking at the very right side of a 1-year chart. You can see the basing, but what you want to see is a breakout. Could be a swing trade, but doesn't really have enough movement to do that. Could go sideways forever, or break to the downside. Don't buy until you see that breakout.

His book Sideways goes into this strategy in detail.

If you want to be in tech, you're looking for more growth than this provides. Not a robust revenue pipeline. A lot better companies out there such as NVDA. See his Top Picks.

Seems to be better managed now. Focus on software in autonomous and electric vehicles. On top of that, number of lucrative partnerships around the world. Interesting, doesn't own, but is getting close. Doesn't think it will be a double from here.

Shares have fallen to what their patents and technology are worth. It won't go out of out of business; there remains demand for their technology. it could be a meme stock again.

Like a lottery ticket. Talk of splitting up the company. Who knows where the bottom is, but you could write a put lower or buy a call higher.

Very weak chart, so dollar-cost averaging won't work. Structurally declining for over a decade. Even Prem Watsa threw in the towel. Broken. Probably goes to $0, question is not if but when. Sell.

Treat it as a lottery ticket. Don't add to it if you own it. He could see it going north of $5 over the next 12 months. Tricky situation they got themselves into.

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. 
Unlock Premium - Try 5i Free

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. 
Unlock Premium - Try 5i Free

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. 
Unlock Premium - Try 5i Free