Jan. 21, 2014, 5:46 PM
Jan. 21, 2014, 5:04 PM
- 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.
Jan. 21, 2014, 10:42 AM
- The DoD states a new mobile apps/services management program currently supports 80K BlackBerry (BBRY +6.4%) phones, and just 1.8K iOS/Android devices. The first phase of the program will be deployed on Jan. 31.
- BlackBerry investors are happy with the news, particularly given the company's recent sales trends, and concerns the DoD would largely rely on iOS/Android hardware going forward.
- On Friday, Citron Research cited healthy government support (due to BlackBerry's security expertise) as a reason for being bullish on BlackBerry.
Jan. 21, 2014, 9:10 AM
Jan. 17, 2014, 1:27 PM
- Short-seller Citron Research, the bane of many a growth stock investor, considers BlackBerry (BBRY +4.6%) an unappreciated value play.
- Citron highlights new chairman/CEO John Chen's success at turning around Sybase (sold for $5.2B to SAP), and declares his early moves - the Foxconn deal, focusing on enterprise software/services - have "significantly de-risked BlackBerry's balance sheet."
- The firm also considers BES 10 to be well-positioned in a fast-growing mobile device management (MDM) software market - it points out BES 10's Google Play rating (4.0/5) beats that of rivals Good Technologies, AirWatch, and MobileIron - and that government support remains healthy due to BlackBerry's security expertise.
- Also mentioned: The value of BlackBerry's patent portfolio; the popularity of the QNX OS in the automotive market (200+ vehicle wins); BBM's growth since arriving on Android and iOS; and a 36M-share drop in short interest from Dec. 15 to Dec. 31 to 107M (suggests a short-squeeze is in play).
- Citron's report (.pdf)
Jan. 13, 2014, 9:56 AM
- H-P (HPQ +3.7%) and Teradata (TDC +1.8%) have been started at Overweight by Atlantic Securities.
- BlackBerry (BBRY -6.2%) has been cut to Underperform by Oppenheimer following a major rally over the last four weeks. RBC upgraded shares last Friday.
- F5 (FFIV +3.7%) has been upgraded to Outperform by William Blair.
- Qihoo (QIHU +4.3%) has been upgraded to Buy by Stifel, and started at Buy by UBS. Shares fell last Thursday following a report questioning the size of the company's search share gains, and rose the day before thanks to an Alibaba investment rumor.
- Cree (CREE -6.6%) has been cut to Hold by Stifel.
- Autodesk (ADSK +1.8%) has been upgraded to Overweight by Morgan Stanley.
- Skyworks (SWKS +4.7%) has been upgraded to Buy by B. Riley.
- Red Hat (RHT +4.4%) has been upgraded to Overweight by Morgan Stanley.
- Fortinet (FTNT +2.1%) has been upgraded to Overweight by Morgan Stanley.
- HomeAway (AWAY +2%) has been upgraded to Overweight by Barclays.
- Garmin (GRMN +1.1%) has been upgraded to Outperform by Oppenheimer.
- Nimble Storage (NMBL +2.2%) has been upgraded to Outperform by Pac Crest. The firm started Nimble and Sector Perform just six days ago.
- Peregrine Semi (PSMI -9.1%) has been cut to Hold by Deutsche.
- Sanmina (SANM -7%) has been cut to Underperform by Raymond James.
- Symantec (SYMC -2.3%) has been cut to Underweight by Morgan Stanley.
- NCR (NCR +2.2%) has been started at Overweight by JPMorgan, and added to the firm's Focus List.
- Vipshop (VIPS +1.8%) has been started at Buy by UBS.
- Parametric Sound (PAMT +4.5%) has been started at Strong Buy by Needham.
Jan. 10, 2014, 9:44 AM
- Microsoft (MSFT +1.2%) has been upgraded to Overweight by Jefferies. The upgrade follows a moderate drop caused by disappointment Alan Mulally is no longer a CEO candidate.
- BlackBerry (BBRY +1.1%) has been upgraded to Sector Perform by RBC. Shares have already seen a big run-up since the company's FQ3 report.
- Baidu (BIDU +1.3%) has been upgraded to Buy by Maxim.
- Micron (MU +0.2%) has been upgraded to Buy by Jefferson Research, and started at Buy by Argus and Sterne Agee. The moves come two days after shares blasted off in response to a very strong FQ1 report (I, II).
- Splunk (SPLK -2.1%) has been cut to Equal Weight by Barclays. The downgrade shortly follows a UBS upgrade to Buy. SA Pro contributor ZNCapital recently took aim at Splunk's valuation.
- Ambarella (AMBA -1.8%) has been cut to Hold by Deutsche. Needham cut the chipmaker to Hold two days ago.
- Marvell (MRVL +1.9%) has been started at Buy by MKM.
- Qlik (QLIK +2.1%) has been upgraded to Buy by Jefferies.
Jan. 7, 2014, 2:44 PM
- Though still well below where it traded four months ago, BlackBerry (BBRY +6.1%) is now up 36% since posting its FQ3 report and announcing the Foxconn outsourcing deal pn Dec. 20.
- AT&T mobile chief Ralph de la Vega has provided BlackBerry with a measure of support at CES, stating his company is "supporting [BlackBerry's] efforts to continue being a viable supplier." Like other major carriers, AT&T has long shown an interest in supporting rival platforms to Android/iOS, with the goal of obtaining leverage against Google and Apple.
- Meanwhile, John Chen has declared BlackBerry will now "predominantly" focus on selling phones with physical keyboards, a market niche where BlackBerry still claims a sizable base of loyal users, rather than touchscreen-only devices, where the company has seen limited success competing against the iPhone and Android hardware.
Dec. 24, 2013, 11:46 AM
- BlackBerry (BBRY +2.7%) is now up 23% from where it traded going into Friday morning's FQ3 report, as shorts continue covering and investors give a thumbs-up to interim CEO John Chen's plan to shift a large chunk of the company's smartphone R&D work to Foxconn, and thereby aid the company's efforts to become profitable by FY16.
- The gains come even though many on the sell-side have urged investors to take profits. Hudson Square Research, which cut shares to Sell yesterday, is worried about plunging service revenue (-36% Y/Y in FQ3) and "an uncertain path for converting enterprise customers to a material per-user recurring fee." Bernstein, meanwhile, is worried about BlackBerry's cash burn.
- FBR has reiterated an Underperform, and thinks BlackBerry's phone business will likely "need a few quarters before showing signs of recovery." At the same time, the firm is pleased Chen provided what it considers "a candid and sobering assessment of [a] business that is in desperate need of a new and profitable direction."
Dec. 23, 2013, 9:37 AM
- Micron (MU -3%) has been cut to Underperform by BofA/Merrill. Shares fell last week in response to a Bloomberg report stating SK Hynix plans to build a new DRAM fab.
- BlackBerry (BBRY -2.4%) has been cut to Sell by Hudson Square Research in the wake of announcing its FQ3 results and the Foxconn deal. Shares are giving back a fraction of Friday's big post-earnings gains.
- Xilinx (XLNX +0.6%) has been upgraded to Buy by Drexel Hamilton.
- LivePerson (LPSN +4.2%) has been upgraded to Buy by Benchmark.
- Skullcandy (SKUL +5.6%) has been upgraded to Buy by Roth.
Dec. 20, 2013, 2:03 PM
- With a lot of bad news priced in, BlackBerry (BBRY +13.6%) has shot higher following its FQ3 report, as investors applaud a Foxconn deal that (for now) will limit BlackBerry's in-house phone design work to a limited number of high-end enterprise devices. Talking to CNBC (video), John Chen asserts the deal will help BlackBerry become profitable by FY16 (ends Feb. '16).
- Chen: "The number one thing I noticed (as CEO) was that our handset volume was dropping and with that, our [fixed] cost was too high ... [Foxconn] has the ability to bring the cost down ... The focus of the overall company is shifting toward enterprise, government customers and software services."
- With BlackBerry expected to lose $1.37/share in FY14 and $1.10/share in FY15, a return to profitability in FY16 would represent a major turnaround.
- Also: On the CC (transcript), Chen stated BlackBerry is aiming to become "cash flow neutral from operations" in FY15, and expects "reasonably good revenue" from BBM around the FY16 timeframe.
- Short-covering is likely contributing to today's gains: 33% of the float was shorted as of Nov. 29.
- More on BlackBerry
Dec. 20, 2013, 9:46 AM
- Chairman/interim CEO John Chen states on BlackBerry's (BBRY -2.4%) FQ3 CC new OEM partner Foxconn, initially focused on low-end/emerging markets phones, will handle most of BlackBerry's phone design work going forward, and that BlackBerry will only design a limited number of high-end, enterprise-focused phones itself.
- Chen, who has already suggested BlackBerry will be an enterprise-focused company going forward, says he does hope BlackBerry would be able to design its own high-end consumer phones in the future, but thinks the company needs to focus its resources on enterprise software for now.
- One bright spot: BlackBerry says it has added 40M+ registered Android/iOS BBM users since making BBM apps available on the platforms in October. For reference, BlackBerry claimed to have ~60M BBM users on its own devices earlier this year. BlackBerry has promised to eventually monetize Android/iOS users via ads; new value-added services are also a future possibility.
- The first BlackBerry/Foxconn phone will be a 3G BB10 device likely to arrive in March or April. BlackBerry still has a sizable emerging markets base, but is also facing very tough competition from low-end Android phones, including sub-$100 products from white-label OEMs.
- FQ3 results, details/Foxconn deal, PR
Dec. 20, 2013, 7:40 AM
Dec. 20, 2013, 7:23 AM
- Revenue of $1.2B in FQ3 is off 24% Q/Q, off 56% from a year ago. About 4.3M smartphones were sold to end customers, about 3.2M of those were BlackBerry 7 devices. Company takes $4.6B in non-cash, pre-tax charges amid inventory write-downs and restructuring.
- Cash and cash equivalents rise to $3.2B as of the end of November from $2.6B one quarter earlier.
- Company enters a 5-year strategic partnership with Foxconn to go after emerging markets - the initial target (early 2014) will be a smartphone for Indonesia and other fast-growing markets.
- CC at 8 ET
- BBRY halted until 7:30 ET.
Nov. 5, 2013, 9:41 AM
- BlackBerry (BBRY +3.5%) has been upgraded to Hold by Deutsche and SocGen, and cut to Underperform by CIBC, in the wake of yesterday's events.
- NQ Mobile's (NQ -12.6%) rating has been suspended by Piper as the Muddy Waters debate continues to boil. SA contributor Goldbaum Research has provided another bearish column this morning.
- SunEdison (SUNE +4.9%) has been upgraded to Overweight by Piper ahead of tomorrow's Q3 report.
- Rovi (ROVI -3.3%) has been cut to Sell by Goldman a week after missing Q3 estimates and cutting full-year guidance.
- TTM Technologies (TTMI +10.6%) has been upgraded to Overweight by JPMorgan a few days after tumbling due to a Q3 miss, soft guidance, and a CEO change.
Nov. 4, 2013, 3:43 PM
- Though new BlackBerry (BBRY -16.9%) chairman/interim CEO John Chen suggests he'll focus on making the company a leader in business services, he says there are no plans to shutter BlackBerry's money and share-losing phone business.
- Chen does promise additional C-suite changes for the struggling company following Thorsten Heins' ouster, and foresees BlackBerry's turnaround taking at least six quarters.
- Chen's track record at Sybase - he helped the transform a second-tier database vendor into an early leader in enterprise mobile apps - has raised hopes among BlackBerry investors, and so have his ties to P-E firm Silver Lake, which just helped take Dell private. However, Chen insists his decision to join BlackBerry has nothing to do with Silver Lake.
- Prem Watsa has echoed Chen's remarks by saying there are no plans to break up BlackBerry. Watsa also claims (in spite of recent reports to the contrary) he could've lined up enough financing for a BlackBerry LBO, but concluded "a leveraged buyout with high-yield debt and at high interest rates was not appropriate for this company." Canaccord, however, thinks a breakup is still the most likely end-game.
- National Bank has cut shares to Underperform, and MKM has upgraded them to Neutral. The latter is still only giving the company a $6/share sum-of-the-parts valuation ($4 for the services ops, $1.50 for patents, $0.50 for BB10/QNX).
- Previous: BlackBerry receiving $1B in financing, Heins out
BlackBerry Ltd. develops hardware and software solutions for mobile communications. It provides platforms and solutions, which support multiple wireless network standards through the development of integrated hardware and software services. The company's solutions provide access to information,... More
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