Seeking Alpha

BlackBerry selling 3M+ sq. feet of real estate, shares +4.1% AH

  • BlackBerry (BBRY) plans to unload the majority of its Canadian real estate holdings via sale-leaseback and vacant asset sale transactions. The properties being sold feature 3M+ sq. feet of space. (PR)
  • CEO John Chen says BlackBerry "remains committed to being headquartered in Waterloo and having a strong presence in Canada along with other global hubs." Following its huge job cuts, the company needs much less office space than it once did.
  • Shares are adding to the gains they saw in regular trading following the DoD's vote of confidence.
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Comments (19)
  • LYogi
    , contributor
    Comments (2439) | Send Message
     
    The pros are in charge of this company now, cutting the dead-weight, leaning up, securing contracts, off-loading risk.

     

    Future is Black

     

    and it is Bright.
    21 Jan 2014, 05:07 PM Reply Like
  • Crispin_in_Waterloo
    , contributor
    Comments (1434) | Send Message
     
    Another 600m in liquidity? Can't hurt. The real estate market has probably peaked. Good call.
    21 Jan 2014, 05:30 PM Reply Like
  • TheBigPayback
    , contributor
    Comments (265) | Send Message
     
    To ask the obvious question: does anyone have an informed opinion as to how much they will be able to raise from this move?
    21 Jan 2014, 05:30 PM Reply Like
  • NCBanker
    , contributor
    Comments (18) | Send Message
     
    TheBigPayback, they are selling 3MM square feet of property and commercial property averages between $12 and $14 a square foot in Waterloo. Do the math to get your answer. It all will come down to what the market thinks the vacant buildings are worth and what they can rent them out for.
    21 Jan 2014, 06:09 PM Reply Like
  • TheBigPayback
    , contributor
    Comments (265) | Send Message
     
    Thanks for the reply
    21 Jan 2014, 06:47 PM Reply Like
  • dmgblsh
    , contributor
    Comments (4) | Send Message
     
    Don't care how much they raise. It's 3M sq ft and the stock went up 30 cents in after market. All signs point to this being a good move. Cash is king!
    21 Jan 2014, 08:05 PM Reply Like
  • Cliff Hilton
    , contributor
    Comments (2039) | Send Message
     
    Ok, the SP is up, any idea (guesses are very much acceptable here) where short covering will take us? And for the record, I would have never guessed the SP would be where it is so quickly. My sinkhole (loses) are now a ditch. I'm looking for the road repair crew to fill in the rest by the end of February. Or sooner...
    21 Jan 2014, 05:55 PM Reply Like
  • LYogi
    , contributor
    Comments (2439) | Send Message
     
    round and round she goes, where she stops nobody knows....

     

    Hi Cliff, nice start to the new year wouldn't you say? :)

     

    What is so promising about the recent rise is that it appears short interest didn't change much for the most part during the first two weeks of January.

     

    So with 100M+ shares that are sold short and will need to be covered and the institutions holding close to 60%...we could see a nice squeeze indeed. Not quite a Porsche/Volkswagon situation but pretty close.

     

    There is massive resistance around $15.70. If/when it busts through that it will shoot up.

     

    before any of that happens though I have to believe that Chen must demonstrate that cash burn is under control and also that BES is going to become the standard for MDM. So far, so good with the DoD on board and announcements pending like the adoption of BB10 in Europe of 38,000 devices by two auto companies.

     

    It's been a battle, what happens going forward will be richly deserved by the steadfast longs that refused to be shooken out but the doomsayers....
    21 Jan 2014, 06:30 PM Reply Like
  • contrarianwise
    , contributor
    Comments (1205) | Send Message
     
    I like the ditches myself.
    21 Jan 2014, 07:14 PM Reply Like
  • Carpenter73
    , contributor
    Comments (122) | Send Message
     
    Steadfast long -That would be someone like me! I have been quietly and patiently waiting and holding long. It's been a hell of a ride so far I can tell you. Best of luck to all (short and long) that are riding this blackberry roller-coaster.
    21 Jan 2014, 07:46 PM Reply Like
  • Carpenter73
    , contributor
    Comments (122) | Send Message
     
    Steadfast long -That would be someone like me! I have been quietly and patiently waiting and holding long. It's been a hell of a ride so far I can tell you. Best of luck to all (short and long) that are riding this blackberry roller-coaster.
    21 Jan 2014, 07:46 PM Reply Like
  • Voice of Doom
    , contributor
    Comments (70) | Send Message
     
    "My sinkhole (loses) are now a ditch. I'm looking for the road repair crew to fill in the rest by the end of February. Or sooner... "

     

    You can say that again. From despair to repair.
    22 Jan 2014, 12:00 PM Reply Like
  • DonAmp
    , contributor
    Comments (164) | Send Message
     
    I love my Pie a la Mode.
    BBRY is on sales, and I got mine while supply last, and before the ship leave the port.
    Long BBRY.
    21 Jan 2014, 05:56 PM Reply Like
  • contrarianwise
    , contributor
    Comments (1205) | Send Message
     
    I think $9 will be looked on as still a good price. But at least it tore through it. The Citron report helps. If they can not burn as much cash and get cash flow positive in 3Q with a huge cash hoard--wow. But we shall see--the pundits and bears are calling for a big cash burn. I hope Chen surprises here.
    21 Jan 2014, 07:13 PM Reply Like
  • contrarianwise
    , contributor
    Comments (1205) | Send Message
     
    I'll bet the folks that put the 1.25 Billion in are happy. But it was always my take that they would not have done that unless it was worth $10 already. Neither would Watsa. So let's hope for the best in 2014--nice start for BBRY.
    21 Jan 2014, 07:25 PM Reply Like
  • Chris Lau
    , contributor
    Comments (2532) | Send Message
     
    $1B loans + $600m extra cash, plus the cash on hand...and shorts still have a position? $10 is looking like a floor on the stock, and is making (BBRY) a top pick for 2014. (My favorite picks last year did well: NOK, ALU. AMD is up there as a recovery play for 2014, too)

     

    Watsa bought 129,000 shares in December, in the open market at (U.S) $7.71. The stock cost him $994,590. At $10 he just made $300,000 in 3 weeks. That's enough to hire another executive.
    21 Jan 2014, 08:22 PM Reply Like
  • AlphaPro2
    , contributor
    Comments (48) | Send Message
     
    Are you convinced of BBRY? Turnarounds take years!
    22 Jan 2014, 03:47 AM Reply Like
  • hz06
    , contributor
    Comments (1099) | Send Message
     
    i was hoping they sell the ones that are no longer needed. didn't know they would sell most and lease back.

     

    crazy blackberry as usual... :)
    22 Jan 2014, 07:36 AM Reply Like
  • the_value_vulture
    , contributor
    Comments (226) | Send Message
     
    This is short covering at this point. Stock is now way ahead of itself. Unloaded. Could be early but with the exponential ramp you don't know where it's going.
    22 Jan 2014, 01:30 PM Reply Like
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