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Chris DeMuth Jr.
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"It's not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it - who look and sift the world for a misplaced bet - that they can occasionally find one." - Charlie Munger I look... More
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  • Seeking Truth From Facts – Tuesday, November 05, 2013 4 comments
    Nov 5, 2013 9:50 AM | about stocks: BBRY

    Blackberry Concludes Review of Strategic Alternatives and Announces Changes to Board and Leadership Team

    Disclosure: I am short BBRY.

    Additional disclosure: Chris DeMuth Jr is a portfolio manager at Rangeley Capital, a partnership that invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our partners, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.

    Themes: FFH Stocks: BBRY
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Comments (4)
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  • drew111
    , contributor
    Comments (505) | Send Message
     
    You're taking the other side of the trade versus Prem. Who said value investors were a bunch of curmudgeons stuck in their ways? A diverse ilk we be. By the way, I agree with your stance, at least conceptually. I haven't looked at the numbers closely. But it is not hard to see they no longer have a moat or competitive advantage. A withering asset is very hard to value.
    5 Nov 2013, 07:43 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (6296) | Send Message
     
    Author’s reply » Yep! I am a great admirer of his, but we both do our own work. That being said, we could both make money from here prospectively. My analysis indicates that the equity is worth far less than where I shorted it (and somewhat less than where it trades today). However, he could get control of BBRY in bankruptcy via his prefs; so, we could both win.
    5 Nov 2013, 09:31 PM Reply Like
  • bazooooka
    , contributor
    Comments (3606) | Send Message
     
    Sounds more like a time-frame difference. I assume you likely wouldn't initiate a new short at these low levels.

     

    In the short run, the lack of white knights meant a test of the lows. But in the long run Prem might be able to extract value out of the brand and patents assuming he can gain control and install competent management.

     

    I hope you do tell us if/when you switch long on this name as I think there's money to be made in the whips.
    6 Nov 2013, 06:29 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (6296) | Send Message
     
    Author’s reply » Will do. I suspect that I'll be essentially out of the position by November 16th and then will reevaluate on November 18th.
    6 Nov 2013, 06:35 AM Reply Like
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