Bruce Campbell (2)BlackBerryBB.TOWATCHDec 08, 2020

He's seen, but hasn't analyzed, today's announcement of a split. It's a shame that the company was a substantial winner, but now is an also-ran. A trade story. Ask yourself if the split creates value and an enhanced opportunity? Often the pieces spun out do better.

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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Not a good time to buy shares with recent under performance of tech & hardware.
Revenues down to record low.
Shifting to cyber security business units. 
Unprofitable 9 out past 10 years.
Would not invest. 
Too difficult to tell future of business. 

BB 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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Don't buy shares.
Company has had better days.
Trajectory downward.
Tech not good anymore.

Results have been sporadic for a number of years.
Hard company to model going forward.
Better names to own in the tech sector (predictable earnings).
Not a strong business for the past 10 years.
Customers turning over etc.