BlackBerry closes near $8, two pension funds only want pieces


With investor/analyst skepticism about deal financing easy to find, BlackBerry (BBRY -6.3%) closed today below where it traded before the Fairfax deal was announced on Monday.

The Toronto Star reports BlackBerry's talks with two Canadian pension funds - the Ontario Teachers' Pension Plan and Alberta Investment Management - have stalled because the funds are only interested in certain assets, such as BlackBerry's network operations centers (IBM was once reportedly interested in them).

The Globe & Mail reported earlier today the Ontario Teachers' Pension Plan was the only pension fund to show serious interest in BlackBerry after being courted by Prem Watsa.

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Comments (49)
  • BugleBoy
    , contributor
    Comments (237) | Send Message
     
    What are the chances, for the sake of us BlackBerry longs, that the deal falls through, the stock drops further in the short term, and then the cuts -combined with sales of written down devices and refocus device strategy) shows profitability and we start returning to health? (I believe what I'm describing is indeed TH game plan as he has described it...)
    Possible?
    (NNTR from the vocal negative folks - I've read your thoughts a hundred times... Thanks)
    25 Sep 2013, 05:01 PM Reply Like
  • Zack 800
    , contributor
    Comments (1841) | Send Message
     
    I, too, would rather BB take its lumps now...

     

    As a BB long (rightly or wrongly) I would rather lose money sticking it out than letting BB be bought for peanuts. I still believe in BB and think they can still make a go of it.
    25 Sep 2013, 05:14 PM Reply Like
  • oldtimer125
    , contributor
    Comments (128) | Send Message
     
    new bear target is $2.00/share
    25 Sep 2013, 05:30 PM Reply Like
  • arcady
    , contributor
    Comments (110) | Send Message
     
    Bugle Boy:
    I too, wonder the same thing...I hope you are right about the game plan, but it seems that the latest series of events show that the BOD, TH, and PW are not concerned with small shareholders interest. And if this is truly the case, I think they have probably covered their tracks sufficiently that they will never see justice.

     

    I have been extremely naïve with market dealings; my investment rationale was based on what I still believe to be valuable, but I never took the greed factor into consideration.
    1) Certicom elliptical encrypton, (which apparently even the NSA has not yet hacked...compared to the new iPhone 5 which was hacked in the first 24 hours), http://bit.ly/183Crdk
    2) QNX systems control software,
    3) Paratek antennae (I received crystal clear phone calls from US at 15,000' elevation in the Chilean Andes, where other phones did not work)
    4) Enterprise smart phone and MDM and security service business
    5) Patent portfolio (including QNX)
    I have understood many of the valid bear points (lack of marketing for example), but have failed miserably trying to understand inane ramblings such as the one just below: (new bear target is $2.00/share).
    I believe it will take years for Apple or Samsung to achieve ATO with the DOD (who, by the way, announced that they are staying with BBRY so they are not going anywhere) and possibly some day soon 5% or 10% of the American public will have had enough of targeted advertising, or worse, hack problems with their banking or home security system.
    If I thought BBRY had no redeeming value, I would have bailed long ago...but that is not the case, and I'll be damned if I'll vote for a sweetheart deal to give my shares away.
    So, for now, still stickin' with it.
    XLBBRY
    25 Sep 2013, 07:19 PM Reply Like
  • Mathodman
    , contributor
    Comments (62) | Send Message
     
    I thought the trimming of the fat was going to finish in a few months. Then a profitable quarter and the return of health. I would have taken a buyout at $17+. And even considered low teens.

     

    But for $9, Prem can go take a walk. I'd rather take a total loss than give away my stock.
    25 Sep 2013, 07:31 PM Reply Like
  • rtmunro
    , contributor
    Comments (544) | Send Message
     
    As you wish...
    25 Sep 2013, 07:36 PM Reply Like
  • Ben Learner
    , contributor
    Comments (211) | Send Message
     
    @arcady
    I am a great fan of BlackBerry's technology. I have ridden this stock, which is my first serious investment, until I have realized that the management is working against the shareholders. I have taken my losses, which I will endeavour to mitigate elsewhere.
    The conference call has been cancelled (press release after market close) and T-Mobile is stopping stocking BlackBerry in its stores.
    This thing is going to take a hit tomorrow even before the market opens.
    25 Sep 2013, 07:48 PM Reply Like
  • BugleBoy
    , contributor
    Comments (237) | Send Message
     
    Thanks for replying, @Arcady. I agree with every point you make - it is why I invested in the company. I believe in the product... sigh.
    25 Sep 2013, 10:54 PM Reply Like
  • Ben Learner
    , contributor
    Comments (211) | Send Message
     
    @BugleBoy
    We all did. I still believe in the product, but the management behaviour is an outrage.
    Good luck.
    26 Sep 2013, 01:32 AM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1927) | Send Message
     
    I ...like you would leave my money in if they had a chance to participate in a turn around. Frankly I would rather see BB go crazy and buy 2 billion worth of their own shares and scare out the shorts. When the cash is gone they could at least get rid of the vultures. No cash no vultures circling.
    With 2.6 billion in cash they could buy their own company. I am already losing so if my shares and many retail investors could ...it would be fun to become owners of the new private company going forward. It is a gamble I would take on the fact that on some systems there is still money to be made. Give phone away in Bric countries and get them hooked on BB's. The US and Canada are too busy staring into their i-souls. Today's whole generation on the couch 24 hours a day staring into their i-phone.
    Whatever ....I'm a little PO'ed and negative over this whole issue. right now.
    25 Sep 2013, 05:18 PM Reply Like
  • KIA Investment Research
    , contributor
    Comments (12735) | Send Message
     
    Ya know loon-a-tick, BlackBerry would hit $17 in like three trading days if they had a press announcement what consisted of basically the following:

     

    "BlackBerry is please to announce our new line of Android powered 'K' phones.
    These phones run the native Android operating system, but run in 'secure mode' of the ARM TrustZone® processor.
    These phones will have full access to 100% of the Google Play app store without any need of sideloading, or porting. Just login and download the apps.
    For our security minded customers, our BlackBerry enterprise server has been enhanced with our App Control System or ACS. ACS allows system administrators to allow or block individual apps, apps from certain manufactures (game providers for example), or media content based on ratings.
    Our new 'K' series phones will begin shipping in December 2014."

     

    This and only this would save BlackBerry, and in fact make them a real contender.
    25 Sep 2013, 08:39 PM Reply Like
  • chattyintrovert
    , contributor
    Comments (123) | Send Message
     
    Sorry... but I for one was more than happy to turf my Android for BlackBerry. I definitely would get rid of my BlackBerry if it became just another Android product.

     

    I am sick of Big Brother.
    25 Sep 2013, 11:26 PM Reply Like
  • Stock Jackal
    , contributor
    Comments (545) | Send Message
     
    Best thing you ever said Mr. Knowitall.
    25 Sep 2013, 11:28 PM Reply Like
  • Hendershott
    , contributor
    Comments (1687) | Send Message
     
    Thanksgiving turkey, about to get carved up.
    25 Sep 2013, 05:42 PM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1927) | Send Message
     
    Our goose appears to be cooked. Not Loons though....Loons taste like anchovies.
    25 Sep 2013, 06:08 PM Reply Like
  • alext1379
    , contributor
    Comments (731) | Send Message
     
    I'm pretty Watsa would prefer to sell his 10% stake than have to wait and right BlackBerry himself.

     

    This trick of buying his own money with other people's debt is first and foremost a tactic to hurry bids that may still be reviewing their options.
    If he ends up buying it, it'll be after he cancels the deal and buys share at $5 each to work his avg down.

     

    Once he takes it private (either now or later) he'll source out the hardware or run a very limited production schedule (where business need to pay first) and rack up the profits using the other parts of BB.
    If he works his average below $9, he'll juice the books and IPO at $15 and up in about 2 years.

     

    Businesses are avoiding BB because of uncertainty. Once BB is private, they will atleast know their BB investment won't be useless after a year.

     

    I personally don't think (and am banking on it) that the deal doesn't go through. Am currently deciding what strike price to buy PUTs on for this Friday's earnings as what was reported last week will surprise again and send the stock down thanks to the 143 million shares still short.
    25 Sep 2013, 06:00 PM Reply Like
  • jimmy2u
    , contributor
    Comments (2) | Send Message
     
    Why don't they just spin off Network Operations and we'll go from there.
    25 Sep 2013, 06:13 PM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1927) | Send Message
     
    Well a lot of the shorts must live with the fact that 4500 people are laid off because of this sort of position. The phone is different from an I-phone...but it is not worthless. I don't like shorting because it can destroy a company even when things are fine. This is the reason for taking the company private. So the bees can settle after being whacked by the shorts.
    This is the type of environment we are in ...fairness doesn't exist and subterfuge is legal. We are on the wrong side of this...."What Goes Around Comes Around....."

     

    For me it is just " Deja-Vu all over again..."
    Or a new one " This is just like Ground Hog Day!" or
    "This is Ground Hog Day All Over Again!" or
    "Things went from bad to worse and money never changed a thing." Bob Dylan
    25 Sep 2013, 06:18 PM Reply Like
  • Ben Learner
    , contributor
    Comments (211) | Send Message
     
    Conference call cancelled. Results (released on 27th) to be published in the consolidated financial statements, to be filed next week.
    T-Mobile stops stocking BlackBerry in its stores.
    Things going from bad to worse indeed.
    25 Sep 2013, 06:41 PM Reply Like
  • Dampflok
    , contributor
    Comments (1099) | Send Message
     
    or as my little daughter used to say: its getting worser and worserer!
    25 Sep 2013, 06:54 PM Reply Like
  • tiger8896
    , contributor
    Comments (714) | Send Message
     
    I wasn't expecting the call to be cancelled but I said to myself that Heins better be on the top of his game for the call because it was going to be brutal.
    25 Sep 2013, 06:59 PM Reply Like
  • Ben Learner
    , contributor
    Comments (211) | Send Message
     
    Heins' performance in June under normal circumstances would have been a CEO terminal event. Clearly it was not the moment to change CEO. This does not surprise me one bit.
    25 Sep 2013, 07:02 PM Reply Like
  • Scal80
    , contributor
    Comments (40) | Send Message
     
    Is this normal? They're stating the call is cancelled due to the letter of intent, has this happened before in the past with other companies? Aren't they required to hold a call?

     

    Seems like the deal is done.
    25 Sep 2013, 07:42 PM Reply Like
  • gferrachi
    , contributor
    Comments (21) | Send Message
     
    He has his 50 million what does he care?
    25 Sep 2013, 09:08 PM Reply Like
  • rtmunro
    , contributor
    Comments (544) | Send Message
     
    recall, you are dealing with a company who's share price has been supported by nothing but deceptive financial reporting and leaked buyout rumors for 3 months.

     

    if you step back to July it seems so obvious. This is EXACTLY how it went down in the board room...

     

    They had to get something done before the 9/27 earnings report. they could not share those numbers without a backdrop of something to hold up the share price. so, like magic, 3 days before the call they get a $9 offer. But wait, its not actually an offer. So, down we go again..."uh oh, the non-offer offer letter didn't work! now what!? the call is in 2 days!" "we have to cancel it." "Cancel it!?" "yep. we can't get on the phone with analysts, with these numbers, and attempt to dodge their questions about the fake offer from Watsa. they will destroy us. our stock will go to $2!" "right...ok. ugh, cancel it. better to take the hit for cancelling than to take the REAL hit for actually being there."
    26 Sep 2013, 12:51 PM Reply Like
  • rra022001
    , contributor
    Comments (25) | Send Message
     
    what a mess.
    25 Sep 2013, 06:47 PM Reply Like
  • rra022001
    , contributor
    Comments (25) | Send Message
     
    I would have never imagined that BlackBerry would destroy itself in this manner. This is completely insane on the part of BB upper mgmt. No Canadian pride, no nothing!
    25 Sep 2013, 06:51 PM Reply Like
  • gferrachi
    , contributor
    Comments (21) | Send Message
     
    You noticed that when? today? yesterday? last week?? It's like Thorsten Heins Is intentionally using every wrong sized bolt that he can find in the bucket so this company falls apart.
    25 Sep 2013, 09:07 PM Reply Like
  • rra022001
    , contributor
    Comments (25) | Send Message
     
    Hey, I sold at 10.50, I'll watch from the side lines as well. Stay calm and invest elsewhere.
    26 Sep 2013, 01:38 AM Reply Like
  • Ben Learner
    , contributor
    Comments (211) | Send Message
     
    If Watsa tries to lower the offer BlackBerry walks away for free.
    No 0.30 a share.
    Nothing.
    25 Sep 2013, 06:55 PM Reply Like
  • Dantes_Will
    , contributor
    Comments (387) | Send Message
     
    Surprised SA hasn't picked up on this:

     

    BlackBerry has cancelled its second quarter earnings conference call and webcast that had previously been scheduled for Friday, September 27

     

    Looks like management is just giving up even trying to explain WTH they're doing and are just hiding from their shareholders now. Pathetic.

     

    25 Sep 2013, 07:49 PM Reply Like
  • Continental Kid
    , contributor
    Comments (238) | Send Message
     
    ...I am just stunned at the rational of HOPIUM of BBRY longs....this stock went from 65 two years ago ..to 8 today....and your waiting for a bounce....?....you may luv the phone....but you are in the minority...which means your wrong in the stock market...its that simple.....yes I know of manipulation...scams..... but a two year chart should be your guide ......manipulation does not last for 2 years
    25 Sep 2013, 07:52 PM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1927) | Send Message
     
    Pith Oss ! Go pull wings off the flies. What is it with you people?
    I watched a guy on BNN who has a billion in assets promote stocks that comeback like BB did...due to his reading of charts.
    Hind sight is 20/20 buddy.
    I'd like to chase you around and find your failure and rub your nose ...but guess what....I don't care...
    25 Sep 2013, 09:56 PM Reply Like
  • chattyintrovert
    , contributor
    Comments (123) | Send Message
     
    "manipulation does not last for 2 years?" It does when hedge-fund short sellers help create a "true market"... particularly when they are heavily invested in the oligopoly of Apple and Google.

     

    Who cares what happens from here... I know I will never buy an Apple or Google product (although the NSA would probably love it if we all did). I never agreed to sign over my privacy in the first place.

     

    Enjoy living with Big Brother, all you iSheep and Zomdroids.
    25 Sep 2013, 11:36 PM Reply Like
  • arcady
    , contributor
    Comments (110) | Send Message
     
    I could not agree more - I will never buy an Apple product, and in fact, my ipod has recently had several close calls with my blender.

     

    True Story.
    26 Sep 2013, 12:31 AM Reply Like
  • Continental Kid
    , contributor
    Comments (238) | Send Message
     
    your luv for the company/product has blinded you to the facts...price is truth.....so dig in your heels and suffer more losses ...but don't spout off about the value of this company and its services ....your dead wrong.....

     

    ps... never traded BBRY....have made bad trades.... but never rode a stock to zero either....its about discipline
    26 Sep 2013, 09:13 AM Reply Like
  • rtmunro
    , contributor
    Comments (544) | Send Message
     
    if you are really this paranoid about 'big brother', what are you doing on the internet? talk about the wild west of cyber security! the iPhone is the least of your worries.
    26 Sep 2013, 12:35 PM Reply Like
  • Chris Lau
    , contributor
    Comments (3413) | Send Message
     
    No soap opera to tune into on Friday. The circus continues. Call cancelled.
    http://bit.ly/18qEFlP
    25 Sep 2013, 08:51 PM Reply Like
  • la cabanya
    , contributor
    Comments (70) | Send Message
     
    PW please show us the money the sooner the better!
    By the way you can start buying today at a serious savings!
    Pay 8 today and if is 9 by November 4th you will get an incredible more than 100% annual interest rate of return!
    Not bad at all!
    25 Sep 2013, 10:04 PM Reply Like
  • mirage12
    , contributor
    Comments (98) | Send Message
     
    Why did you just not sell at $9. Or now? Playing Russian roulette.
    26 Sep 2013, 12:46 AM Reply Like
  • rtmunro
    , contributor
    Comments (544) | Send Message
     
    @mirage, same reason he/she refused to listen and sell at 18, 16, 10.50...

     

    I suspect half or more of these "longs" own exactly zero shares and simply love Blackberry phones. That can be the only explanation for a lot of the articles and comments we have endured for the past 9 months.
    26 Sep 2013, 12:21 PM Reply Like
  • jnass777
    , contributor
    Comments (2) | Send Message
     
    The best part in all of this is that the company will be sold over 10 dollars a share, or restructure itselft.. After the earnings report expect the company SP to shoot over 10 dollars. That's my prediction.
    25 Sep 2013, 10:20 PM Reply Like
  • Kenpogi
    , contributor
    Comments (48) | Send Message
     
    I bought BBRY @ $13, had some calls that expired worthless. Lose big hard earn money. Praying for turn around. In sickness and in health, long forever BBRY.
    25 Sep 2013, 10:20 PM Reply Like
  • mirage12
    , contributor
    Comments (98) | Send Message
     
    I sold my position at $9.79. In other words at a significant loss. Until the profit warning I was stuck in the same mindset as many longs here. Hoping and expecting for a rebound because of the significant assets and value of the company if they could mount a recovery. The bitterness has passed and as I watch from the sidelines I see a lot of people that had a similar mindset and can't let go. It makes absolutely no investing sense to stay but I know the feeling and wish you all the best. The only reason to stay when the stock bounced over $9 was a competing bid. The odds were already stacked and many went all in. Don't mean to be a prick but the emotion level in this name is destroying people.
    26 Sep 2013, 12:45 AM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1927) | Send Message
     
    I don't think you are a prick. Its the guys around here who constantly come around to rub your nose in poop.Everyone knows, who is in this, that we screwed up. But for people to come around and rub your nose? What is it in the human Psyche that encourages that? I guess it is a little like standing around and doing nothing at a train wreck.
    26 Sep 2013, 08:05 AM Reply Like
  • rtmunro
    , contributor
    Comments (544) | Send Message
     
    to be fair there was a whole lot of that coming from the long side when Blackberry was rallying in February and March.

     

    the fact is this story is far from over. $9 is by no means guaranteed and there's still a lot of money to be made. There's still potentially $8 of downside left. Probably less, but possibly $8. Mock me if you like, I've been hearing it since Nov. 2012.
    26 Sep 2013, 12:32 PM Reply Like
  • Martens
    , contributor
    Comments (10) | Send Message
     
    Restructure, and please current shareholders, accept no bid from Watsa for $9 or even lower. I will be painful. BoD has to solve all problems themselves, current BoD are responsible for this shit thus not capable. They have to be fired! There are too many lies! Get new management on board. Improve quarter by quarter.The new Z30 is very sexy after all these flops except Q10 and Bold 9900.
    26 Sep 2013, 06:07 AM Reply Like
  • Loon-a-tick
    , contributor
    Comments (1927) | Send Message
     
    Hey Martens...I think it is out of our hands...all we can do is try and draw attention to this story and look for justice.
    26 Sep 2013, 08:07 AM Reply Like
  • RR3773
    , contributor
    Comments (51) | Send Message
     
    How can a company write down a product's inventory before the "servers" are even yet installed? It makes no sense to write down inventories when there is a whole year yet to go for device sales as the commercial servers are up & running. Obviously, the write down was to ensure an instant profit to the new owner, remaining hidden and private. Us long term players are ripped off. Basically the entire company is being sold for $3 (minus the cash). Where is FaceBook? The Z30 is going to sell big time. Ha, they let a BOD buy the company in the same week as the Z30 release, the BBM App debute and the increase in server installations to 25,000. If the $900million in inventory write-down did not get written down; would we not have actually made $ per share? Am I doing the math right? Where is the shareholder revolt? Perma makes a killing.
    26 Sep 2013, 08:32 AM Reply Like
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