I am glad that I only sold the profit portion of my BlackBerry (NASDAQ:BBRY) position last week. I said that technical indicators last July 2 were strong enough to push BBRY beyond $10.90. Monday proved my hypothesis that profit taking will not slow down the momentum of BlackBerry.
The huge +5.66% run of BBRY yesterday confirmed that many shorts are still covering their losing bets. The short squeeze must be very painful now for BlackBerry detractors. BlackBerry posted a new 10-month price of $11.34.
BBRY is now trading at pre-John Chen price levels. The buy-side community is obviously winning the war recently.
Citron Research Increases PT to $20
Andrew Left-owned Citron Research raised its price target for BlackBerry from $15 to $20. I am honored that Mr. Left's bullish new PDF document for BlackBerry is similar in tone with my old Project Ion article. I believe that Citron Research's report might have been also a factor why BBRY jumped big yesterday.
Citron Research also helped pushed BBRY last January with his $15 report for the company. Mr. Left and I do not agree on 3D Systems (NYSE:DDD) but I appreciate his positive outlook for BlackBerry. Citron Research's support of BlackBerry is very ironic because Andrew Left has a reputation as a short-seller.
No doubt, Left's new $20 price target for BBRY is giving BlackBerry shorts much consternation. Citron Research's endorsement may inspire more buy-side support for BlackBerry.
Citron Research's report affirmed my view that Project Ion and BlackBerry's proven secure enterprise solutions makes BBRY a future leader in Internet of Things and Machine-2-Machine (M2M) communications.
One of BlackBerry's Project Ion future growth drivers will be in the health industry. The company invested in NantHealth last April. John Chen definitely wants BlackBerry's secure enterprise products to leverage NantHealth's strong cloud-based networked medical IT systems.
John Chen is using NantHealth to promote BlackBerry end-to-end solutions to the healthcare industry via NantHealth. QNX embedded OS for medical devices could help doctors and health professionals monitor and analyze real-time patient data. BlackBerry-powered machine-learning medical devices will greatly contribute to improving medical care.
BES 10 or BES 12 will also help doctors and medical workers securely share patient data for collaborative assessment.
Doctors and nurses can buy secure BlackBerry phones and tablets to be always in real-time connectivity with their patients. The ironclad security of BlackBerry's ecosystem should safeguard the privacy of patients and healthcare professionals.
Around 250 hospitals already installed NantHealth's system. NantHealth's network has 16,000 medical devices that gather more than 3 billion vital signs of patients every year. Project Ion's future, with NantHealth's platform, is therefore a valid future major catalyst for BlackBerry.
BlackBerry is already working on implementing a Project Ion-inspired healthcare IT solutions for India. John Chen does not only want to profit from India's big population via sales of the BlackBerry Z3. He also wants BlackBerry to become a leading provider of integrated hospital and clinical information systems in that country.
Citron Research's new Price Target $20 might inspire more buy-side investors to make an entry point in BlackBerry while it is still below $12. In spite of Andrew Left's history of short selling, I like his bullish sentiment over BlackBerry. I am sure that there are investors who respect Andrew Left and they may heed his call to load up on BBRY shares.
Citron Research's Project Ion assessment is in line with my own perspective. BlackBerry's future is not only limited to smartphones and tablets. NantHealth is a big stepping stone for BlackBerry to make money in healthcare.
BarChart Opinion's technical indicators still gives BBRY an overall average score of 80% Buy. It means BBRY is still good to bet on for short-term, medium-term, and long-term investing.
Lastly, shorts covering their positions will likely continue to propel BBRY higher.
Disclosure: The author is long BBRY, DDD. 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.