The guy that messaged me yesterday telling me to "stop hyping the market" by writing so much about BlackBerry (NASDAQ:BBRY) is going to love this piece today. I really didn't intend on writing yet another piece on BlackBerry today, but we appeared to get some data this morning that perked my ears up.
This is going to be a relatively short piece that points out what appears to be fairly significant data on the BlackBerry front. If you're looking for reasons why I think going long BBRY is the right choice to make right now, you can consult a couple of my previous articles from this past week:
July 1, 2014 - BlackBerry's Short Squeeze Just Starting
June 27, 2014 - BlackBerry: Back Up The Bus; I'm Buying More
June 23, 2014 - BlackBerry: Is $20 A Reasonable Target?
While doing my morning dragnet through Twitter and the news sites on all the stocks that I own and follow, I came across an interesting tidbit floating around on Twitter this morning. According to user @seaeagle197 on StockTwits, there's some import data relating to India that needs to be looked at for BlackBerry.
(h/t @JohnLBair1 on Twitter)
Zauba, a site that plays home to India's export and import data, seems to note that BlackBerry's Z phone imports seem to have doubled for the month of June:
If the data that this site shows is accurate, which, judging by a small trip through the site, it looks to be, it's relatively important information for BlackBerry. While the company is no longer a "phone first" company, what it does want to see is a foundation for revenue in smartphones while it rolls out its Internet of Things. This data, again if 100% accurate, shows notable demand in India.
Mr. Chen, on the company's last conference call, made a note that the demand for the Z3 in Jakarta was very good - almost to the point where the company had trouble keeping the item in stock at some places. This demand would run commensurate with Chen's statements made during the company's conference call about optimistic thinking in India:
When speaking about the Z3 launch in Indonesia, Chen noted there were somewhere around 900 press releases and articles that were predominately favorable in Indonesia. He noted that the brand is strong and "very popular" with people there. Chen went on to explain that demand looked strong and that inventory looked low at certain periods. "Volume forecasts are running ahead of the company's expectations," he said. India and other countries will be coming in the coming weeks - and according to Chen, they're all showing strong demand. Extremely bullish notes on the plan to move BlackBerry into emerging markets, if you ask this investor.
However, just because these phones are being imported doesn't necessarily mean they're being sold - but I can't imagine this data continue to trend this manner without inventory moving off the shelves. We'll compare this site's notes for June with those of July when the data is released - and then compare them to what is reported by the company at the end of the quarter to make sense of this.
With tons of momentum behind the company and its stock right now, BlackBerry is a name that I would be scared to short. The stock has shown serious strength, moving all the way from the $7 level to the $10.50 level in a matter of weeks. Right now, the security is poised to open higher for the day, trading $10.71 x $10.72 pre-market.
I added to my position last week, and now hold BlackBerry as one of my largest positions. I remain bullish here, contend Chen is the man for the job, and hold my price target of $15.
Best of luck to all investors.
Disclosure: The author is long BBRY. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.