Seeking Alpha

Morgan Stanley delays upgrade to BB10

  • Morgan Stanley is reportedly holding off from replacing its employees' older Blackberry (BBRY) phones with new BB10 devices, due to the uncertainty caused by the latter company's decision to consider selling itself.
  • Morgan Stanley wants assurances that BlackBerry will provide support in the long term.
  • The bank's delay is another blow for BlackBerry following a report this week that sales of the BB10-based Q10 have flopped. The hope is that the corporate market will help turn things around.
  • Still, one large U.S. bank is piloting BB10 phones, Canadian banks are using them, and Spanish-language broadcaster Univision Communications has bought 2,000 Q10s as part of an upgrade.
Comments (37)
  • Genesis Housing
    , contributor
    Comments (423) | Send Message
     
    yikes, they might all end up just switching to the WP
    30 Aug 2013, 07:24 AM Reply Like
  • Davidoff
    , contributor
    Comments (284) | Send Message
     
    There is sill a long way to go for MSFT to reach BB's security level. It's one thing to equip flight attendants, but it's completely another to equip bank employees and governmental agents. If BBRY disappears, no one would be able to replace it on the corporate and governmental markets. It would take billions of dollars and years of R&D. In terms of sunk costs, BBRY is simply unbeatable on that marginal, but nevertheless extremely important market. I doubt that AAPL, MSFT or GOOG would take the risk to compete on that market in wake of the investments to make and potentially modest returns.
    30 Aug 2013, 08:21 AM Reply Like
  • alext1379
    , contributor
    Comments (706) | Send Message
     
    Samsung's marketing dept could replace BlackBerry security easy, haven't you seen their commercials? Oh wait, its been a while since Samsung tried to pass KNOX off as something other than a bandaid for open heart surgery.
    30 Aug 2013, 10:28 AM Reply Like
  • mvermaak
    , contributor
    Comments (267) | Send Message
     
    Early morning blackberry bashing going strong and seems to have some success but i just think all this cannot be true, the American press can be destructive as they tried to d estoy Toyota without success and blackberry is very comparable to Toyota meaning reliable and lovable
    30 Aug 2013, 07:38 AM Reply Like
  • Randal James
    , contributor
    Comments (2318) | Send Message
     
    Early morning paranoia going strong and seems to have reached levels not seen since H. G. Wells 'War of the Worlds' days.

     

    "On Sunday, October 30, 1938, millions of radio listeners were shocked when radio news alerts announced the arrival of Martians. They panicked when they learned of the Martians' ferocious and seemingly unstoppable attack on Earth. Many ran out of their homes screaming while others packed up their cars and fled."

     

    Wells, of course, was secretly in the pay of Apple...
    30 Aug 2013, 09:07 AM Reply Like
  • Davidoff
    , contributor
    Comments (284) | Send Message
     
    Randal,

     

    Sorry to say that, but you behave like a real a**hole. Some SA users have huge paper losses and your mocking comments aren't constructive nor informative. Each trader makes bad trading decisions and they deal with them as they can, sometimes even by denying reality. I belive that this site is made to share opinions and sometimes to help each other. But it's really pathetic to make fun or even attack people, especially the one who are in the red. Like if you had never lost any money. There is a real person behind each Internet comment and if you are unable to put yourself on someone else's place, I pity you. Generally speaking, it's a sign of a psychiatric disorder.
    30 Aug 2013, 09:33 AM Reply Like
  • gwynfryn
    , contributor
    Comments (3883) | Send Message
     
    Ran, you mean Orson, yes? H.G would never have worked for Apple!
    30 Aug 2013, 11:08 AM Reply Like
  • Randal James
    , contributor
    Comments (2318) | Send Message
     
    Davidoff,

     

    Thank you for confirming what I've long suspected - rational psychosis.

     

    Being a trained business graduate, you have doubtless encountered the Rational Market Theory. In a nutshell - the market is always correct because everything is known, though to different degrees by different participants. BlackBerry shipping clerks, for instance, may have a better idea of current sales than their colleagues in marketing and both are presumably ahead of what we poor field mice can guess.

     

    Out here in Mouseville, we have the business news that is relevant to our positions and to companies in competition with us or in related fields. We have statistical news that is sometimes important, such as short interest of insider sales/purchase activity. Pundits of all types, from the scholarly to the show-biz variety offer opinions. Dang! They do not all agree!

     

    Some investors do informal channel checking. It helps confirm or puts a damper on your own beliefs. Thus, when a T-Mobile salesperson told me that BBRY had been dead for them I was surprised. When my friend at the AT&T regional device center said that they were disappointed in BBRY sales, it acted as a reinforcement of what I'd already heard. Even so, I realize I live in Seattle, which is Microsoft country, and there could be a regional bias here. It did cause me to sell my position in Blackberry before the last quarter's results.

     

    I did that after consulting with two contributing authors here who were both bullish on BlackBerry. Ultimately, we all make our own decisions and should take responsibility for them.

     

    You mention, quite correctly, that there are holders here with significant paper losses. Their hope is sometimes buoyed by the absolute bovine waste of buyout targets exceeding $30, of sales in distant lands that will turn this around in a hurry, or that Apple, with $150B in cash is 'terrified' of a resurgent BBRY.

     

    If, as you say, you wish to help some of the investors who are hanging onto hope against an onslaught of not-so-hot news, is it not incumbent upon you to deflate some of these irrationally lofty projections? To steer the discussion back to the plausible?

     

    I have often pointed out that my opinion is there is value in BBRY and that a buyout might fetch a better price. The nature of buyouts though, does not favor enriching current shareholders. I would encourage anyone who does not believe this to have a ring appraised at a jeweler and then take it to a pawn shop for an offer.

     

    Many have brought up the interesting news that seems to suggest stat counter (or something) shows a big gain in BBRY usage. I haven't reamed anyone on that because I don't know. But I will hop to question a suggestion of an irrational bid from Lenovo, who probably cannot retain BBRY's enterprise efforts. I will question the too-casual inference that Market Currents is just another Apple shill. This morning I challenged the notion that Nokia and BlackBerry should merge because, my view, both are reaching for different objectives. Throw in the complication of finding common ground and you'd have a magnified mess rather than simplified challenge.

     

    As for your snarky implication that I've never been in a position with a loss that was crippling... that might be supposition on your part, no?

     

    Waaay, waaay back in 2011 when this was a $70 stock, I'll bet the euphoria was strong. During the long denouement, BBRY has given up 85.5% of its value at a clip of about 2.85% per month. It has surely moved from what was believed to be a growth stock to a value stock into this murky place where businesses exist on speculation of how they move back onto firmer footing.

     

    If my teasing comments serve only to remind longs that this is not Disneyland, that is more of a public service than your silence on the same.
    30 Aug 2013, 12:38 PM Reply Like
  • Ben Learner
    , contributor
    Comments (211) | Send Message
     
    Randal,

     

    Any one who has put a substantial amount of money into BlackBerry will either be a competent investor or will (should) have had a professional evaluation of the company and the stock before buying BlackBerry shares. This will have told the investor that BlackBerry could trade around 12$ for a long time.

     

    Not every long investor lives in a fantasy expecting a buyout at 30$. In fact, I do not think most in SA do.

     

    And yes. I think Apple is worried. Not so much because BlackBerry is a threat to their sales, but because BlackBerry 10 is a superior operating system and BlackBerry has returned with products that already have become the gold standard in security. This may not matter to many consumers, but it sure does matter to corporations and governments.
    30 Aug 2013, 09:24 PM Reply Like
  • Randal James
    , contributor
    Comments (2318) | Send Message
     
    Hello Ben, I agree that any serious investor can see the situation for what it is - a tiny risk of things going terribly worse and a decent short-term risk of a haircut, but not as bad as last time. It truly is the 'where do we go from here and with whom?' that is a wild card with significant implications. Most likely up, but maybe not as high or soon as hoped.

     

    I thought the interview with the new director today was solid, as it suggests they would like to keep the enterprise (the crown jewel) and put the rest out to pasture if a farmer offers enough for the livestock. That would leave BB as a services and software provider, pretty much what IBM would desperately like to be.

     

    But there are holders here who are newer to the investment field and who probably cannot believe how poorly this has turned out. Regardless of whether their investment was substantial in real terms, the loss surely is if they have been long for a year and a half or more.

     

    So when a negative report comes out, as it did yesterday in the WSJ, there is no need to snarl (and I'm not referring to you, sir) at the Journal or accuse Apple of buying off the media. Can you even imagine the firestorm that would create? The lawsuits?

     

    It is a bit of sand to put in the basket where you weigh the good and bad. Perhaps the next one, like the interview today, will erase yesterday's negativity altogether. Although many of the stocks I own do not get such a daily whipsaw of contrary indicators, I evaluate everything and I'm sure you do the same.

     

    Not long ago Nokia introduced a phone with a remarkable camera. It is expensive - almost as much as an iPhone (laughs softly). There were plenty of doubters out in herds to say why it would not ever sell, that the technology was impossible, and about a hundred other suggestions of failure. Like the BBRY faithful here, it encouraged me to delve into it as much as I could until I was satisfied that it was a kick-rear offering. Even Walt Mossberg loved the camera though he correctly pointed out that there were far more phone apps on the dominant iOs and Android platforms.

     

    But when projections were made by some of the most earnest of the Nokia fans "2 million units this year!" there was cold water thrown on those projections by other Nokia people who pointed out that AT & T will have an exclusive for at least 3 months in the US and they have been poor dance partners, european economies are still soft and demand for high-end phones is subdued nearly everywhere.

     

    We all need those reality checks even though it sure is fun to think the _________ (World Cup, Super Bowl, Wimbledon, World Series of Poker) is ours for the taking.

     

    Have a relaxed weekend. Fall is creeping in here in the NW. Like all good seasons, I hope it is long.
    30 Aug 2013, 10:33 PM Reply Like
  • ELLAS
    , contributor
    Comments (1483) | Send Message
     
    Davidoff
    If that is the case then can the nonsense and over hyped negativity stop with BBRY? It's all the ridiculous opinionated articles that's oiling the stop price and BBRY's image.

     

    BBRY obviously needs some form of BOD replacements due to some weird news release timings and such. PLUS marketing is something to be desired. But the negativity is absolutely nuts lately.
    31 Aug 2013, 08:43 AM Reply Like
  • Cliff Hilton
    , contributor
    Comments (1410) | Send Message
     
    Hackers would have a field day with any other phone. The drama continues....
    30 Aug 2013, 07:39 AM Reply Like
  • pizzatony
    , contributor
    Comments (3) | Send Message
     
    Bankers, people with no imagination & prospective outlook.
    30 Aug 2013, 07:40 AM Reply Like
  • Arist07
    , contributor
    Comments (14) | Send Message
     
    MS could lose clients if they change to less secure phones
    30 Aug 2013, 08:08 AM Reply Like
  • tiger8896
    , contributor
    Comments (574) | Send Message
     
    You can't be serious saying that. When was the last time you asked your financial adviser "What phone do you use" or "Is your cell phone secure" as a criteria for picking an adviser?
    30 Aug 2013, 10:10 AM Reply Like
  • gwynfryn
    , contributor
    Comments (3883) | Send Message
     
    Never, in my case, tig, but it would be a good idea, if I ever get myself to trust telephone banking!
    30 Aug 2013, 11:09 AM Reply Like
  • Z10isgreat
    , contributor
    Comments (188) | Send Message
     
    Um.i don't think that is the issue. The issue is secure trades on the phone and secure transfer of sensitive data. Frankly what phone my broker is using to facilitate my business wow be of paramount concern. I would not be providing anything sensitive on is or Android platforms and would be horrified if iearned.my broker was transferring my sensitive data across these platforms.
    30 Aug 2013, 12:06 PM Reply Like
  • tiger8896
    , contributor
    Comments (574) | Send Message
     
    Trading is not an issue. They aren't trading on phones, retail clients might be but not Morgan Stanley employees. Besides these banks are tremendous investors in technology so they probably have air tight firewalls and VPN's and any sensitive data would only be transmitted intra-network and not on the internet.
    30 Aug 2013, 01:19 PM Reply Like
  • logicalman
    , contributor
    Comments (763) | Send Message
     
    MS could lose a lot of clients, absolutely. My take on this is that they will simply continue using their older BBRY phones until they are sure that the company will survive. That shouldn't take very long now. They certainly don't have anything better to go to right now, if ever (next couple of years for sure). As I have said before, BBRY has ALL it takes to not only survive but to regain its former superiority. Time is all that is needed along with an even playing field in the media. Peace!!!
    30 Aug 2013, 08:48 AM Reply Like
  • lovetobbq
    , contributor
    Comments (57) | Send Message
     
    It's ridiculous that bbry came out with an up for sale sign. The bod is supposed to maximize shareholder value, not just the largest shareholders value.
    30 Aug 2013, 09:06 AM Reply Like
  • beavertail
    , contributor
    Comments (3) | Send Message
     
    No, the media put (spinning) up the for sale sign for BlackBerry. BlackBerry put up strategic review.
    Its result is spinning off BBM. Possibly partners and may be a sell. Media painted sell off is the only option, nothing but wanting to destroy a worthy competitor.
    30 Aug 2013, 09:30 AM Reply Like
  • gwynfryn
    , contributor
    Comments (3883) | Send Message
     
    If someone does buy BBRY, why would they not "provide support in the long term"? Do they think Apple/Samsung will do a joint buy-out, in order to scrap it?
    30 Aug 2013, 09:22 AM Reply Like
  • Herr Hansa
    , contributor
    Comments (3079) | Send Message
     
    Certain potential buyers would be far more interested in converting the user base of 70+ million users. IBM previously showed interest in the device management and network infrastructure. There is no buying to liquidate idea, but there is interest in converting existing users.
    30 Aug 2013, 02:11 PM Reply Like
  • Zzoot1
    , contributor
    Comments (179) | Send Message
     
    Blackberry not for Sales.

     

    http://bit.ly/15bqBdp
    30 Aug 2013, 09:28 AM Reply Like
  • Cliff Hilton
    , contributor
    Comments (1410) | Send Message
     
    @Zzoot1,

     

    Good find. We should keep that link handy over the next several days as the hounds start sniffing for blood.
    30 Aug 2013, 02:54 PM Reply Like
  • Chris Lau
    , contributor
    Comments (1572) | Send Message
     
    (MS) should upgrade before December 31, 2013. There's a free CAL upgrade program they should take advantage. I would imagine they'd save quite a bit upgrading before this promotion. Once MS puts in new BES servers they can have the Work/Personal split on the phones, and staff can install free games from (EA) like Real Racing 3, Sims.
    30 Aug 2013, 11:26 AM Reply Like
  • farmwersteve
    , contributor
    Comments (267) | Send Message
     
    Morgan Stanley, by not switching phone companies and simply holding off on their upgrade says it all..... no other os is as secure as BlackBerry.

     

    Lol, they would rather use 2 year old phones than any other brand new phone on the market today..... that is incredible
    30 Aug 2013, 11:32 AM Reply Like
  • ELLAS
    , contributor
    Comments (1483) | Send Message
     
    This shows BlackBerry continues to be King of Mobile Security. BlackBerry = Security Period.
    31 Aug 2013, 08:43 AM Reply Like
  • Aristotle5
    , contributor
    Comments (285) | Send Message
     
    Two guests just appeared on CBNC and both were quite positive on BBRY. One said she sees $18.00 per share in the next three to six mionths. As I have repeatedly written, if BBRY partners with someone look for a price of around $18.00. A buyout will bring a price in the $20s. Privitization will be around $15.00-$16.00. BBRY has LOTS OF VALUE and GREAT potential.
    30 Aug 2013, 03:36 PM Reply Like
  • DC_Zee
    , contributor
    Comments (126) | Send Message
     
    The BB story changes for the better if they wake up and turn off the restrictions for running Android apps on the new BB10 devices. Let consumers download and run the Google Apps straight off Google Play and have done with it. If you can sideload an android app, then you should be able to download one. All it takes is for BB to unlock the ability. Do it!!
    1 Sep 2013, 12:44 AM Reply Like
  • mvermaak
    , contributor
    Comments (267) | Send Message
     
    I am sure people realize that bad publicity is exactly aimed at banks and serious corporate clients to make them think blackberry will disappear
    Typing my z10 I can hardly imagine that happening with this quality phone
    1 Sep 2013, 12:09 PM Reply Like
  • mvermaak
    , contributor
    Comments (267) | Send Message
     
    I just noticed Morgan Stanley increased holdings of blackberry shares on June 30,i can only presume they are not owning 6 million shares in a company they fear are closing down see institutional holdings of bbry stock
    1 Sep 2013, 06:46 PM Reply Like
  • gladtidings
    , contributor
    Comments (159) | Send Message
     
    Add Goldman Sachs increased holdings by 76% to 4.7 million shares, Citigroup by 320% to 2.5 million, JP Morgan by 42% to 2.1 million, Blackrock Fund by 62% to 1.3 million, various Canadian Pension Funds totaling 4.9 million - something is afoot?
    1 Sep 2013, 09:46 PM Reply Like
  • mvermaak
    , contributor
    Comments (267) | Send Message
     
    Gladtidings thanks and I hope we reading this right
    Also see bank of America
    2 Sep 2013, 11:17 AM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    What does it say when despite the fact that they are concerned about the longevity of the company that they didn't buy any other smartphones i.e. Iphone, Samsung Nokia? That's right those other phones security cannot be trusted. Why did DOD only allow Iphones to be used on their networks only because they will be managed by Blackberry MDM solution, That's right because Blackberry is the only phone or platform secure enough. So to all you people who are hoping for the demise of Blackberry just keep that in mind! It will be a sad day for the consumer if that happens because now Apple and Samsung can continue putting out insecure Phones with outdated OS because you don't have any other alternative. To all you people who hope to see Blackberry fail just because you want to say i told you so, keep that in mind!
    2 Sep 2013, 05:11 PM Reply Like
  • Randal James
    , contributor
    Comments (2318) | Send Message
     
    As long as you promise to keep in mind how lame your argument was.

     

    And someone will salvage or retain BBRY's security where it is needed in specialized government and commercial fields.

     

    When you are calling to ask what time the movie starts? Not so important - Putin told me himself.
    2 Sep 2013, 05:18 PM Reply Like
  • Crazy Mazy
    , contributor
    Comments (434) | Send Message
     
    What was the point of making this announcement by MS to give Blackberry a helping hand? Lately the only news reported for Blackberry has been negative news. So what are these companies, expecting, by saying were not buying the products because we think they might not be around in three months, to somehow help them increase their sales, and thereby staying in business so that they will continue to support their products? Besides I'm surprised that MS couldn't tell by looking at BB balance sheet that they are in no immediate danger of going out of business! Basically it looks like there are some pople who are hell bent on making sure BB goes out of business and will say or do whatever to make them look bad.
    4 Sep 2013, 08:58 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|