Opinions Lyle Stein
BlackBerryBB.TOHOLDJun 27, 2017
Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
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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.
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Premium 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.
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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)
This had been a great story, but had to reinvent itself, so your time frame is really important. John Chen decided to change this into a software company, and it is going in a totally different direction. The market liked that their software, particularly in the automobile sector, is widely used, and there are lots of applications for that great software. The problem is, they have to change the business. Their unit sales are not really profitable relative to the share price, so it trades at a valuation level that doesn’t make any sense. You buy this because you believe that their software will be in vehicles or something else, 5-10 years from now.