Opinions Brian Madden
BlackBerryBB.TOHOLDAug 29, 2016
Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
You might be interested:
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium content
The guidance was weak, and BB faces numerous challenges. But the company is still undergoing a strategic review, following overtures for a takeover. This remains a possibility, but it is hard to endorse on that alone. Fundamentals remain weak and much worse than expected. The balance sheet is OK but its large cash cushion is gone. Cash flow has been negative the past two years. Speculative as a possible takeover, but not really endorseable as a long term holding right now.
Unlock Premium - Try 5i Free
Premium contentPremium contentBB is now trading at 4.4x times' Price/Sales. In 4Q-2023, the company’s revenue declined by -18.4% to $151M, in line with the estimates and EPS is -$0.02, beating estimates of -$0.07. The balance sheet is okay, with net debt of $17M. However, the trailing twelve-month cash flow is concerning, as the company generated -$263M.
The company announced a strategic reveiw which has given shares some support but we wouldn't view it as coming from a posiiton of strength and are not sure we see a whole lot of reason to be excited here.
Unlock Premium - Try 5i Free
Premium contentThe forgotten Canadian cell phone developer has re-invented itself in the cybersecurity space and is investing heavily into AI technology - partnering with Amazon's web services. Although operating at quarterly loss, cash reserves are growing and it trades at under 2x book. We recommend placing a stop-loss at $4.25, looking to achieve $8.00 -- upside potential over 33%. Yield 0%
(Analysts’ price target is $8.03)
CEO is very well remunerated at $89 million. However, it is not entirely all recurring compensation. He earns about $3 million a year, but when he joined the company, he got a very lumpy one time signing bonus, which was comprised of a lot of restricted stock. It remains to be seen whether he will meet the performance criteria, and actually realize on that, because it is tied to whether the shares outperform the NASDAQ, which has not been happening. Buying “value plays” in technology is a tough way to make money. Incentives motivate behaviour, and looking at the conditions attached to John Chen’s pay packet, the 3-year anniversary date is mid-November, so if you own the stock he would stick around to see what comes up between now and the anniversary date.