Why I Love BBRY Stock
I bought 500 shares of this stock last month, and I love it for the following reasons:
1) This company has over $1 billion in cash. They are now cash flow positive.
2) The Patents they have are worth over $2 billion by conservative estimates. They have thousands, and can easily turn into a patent suing machine on short notice. Or they can sell some. It is great overlooked value.
3) The new CEO Mr. Chen is amazing. A tech turnaround expert. I have watched every interview I can get my hands on with this guy. He is the best leader for this company, hand-picked by Prem Watsa. Ever since he's been on the job, things have only gotten better.
4) Chen said it takes 3 years to turn a company around. He is going into year 3 and is on track.
5) the new Priv on the Android platform was a good move. The industry has consolidated and this is the path forward. The reviews are strong. With less than 1% market share, I'm confident BlackBerry found a niche. It will be the more educated, upperclass niche for the Priv and cheaper models can come later. The sales have been out the gate well received. I have read so many reviews that I'm sure increasing market share from below 1 percent is a cinche. The security is for the more sophisticated consumer and untouchable on the market. The few glitches are irrelevant. Those get smoothed out as time goes with new updates.
6) Even if Priv doesn't pan out, the company made strong acquisitions in other areas. It's not the phone company that is in the so-well branded minds of the consumer. They are flying under the radar with great new tech companies that many people don't understand. Many analysts want them to dump hardware and focus on a quick path to profits in software. So Priv is going to be a great branding model that is profitable, or it's going to put them on a fast track to profits in its failure. Either way, the future is bright.
7) Their stock buyback program has doubled in its capacity. They are returning value to shareholders buy taking a potentially 5% shares outstanding off the market to be retired, and they are so cash rich it won't even make a dent in their cash position. It is faith in their company and inside knowledge of its value.
8) It is the number one stock of Prem Watsa's Fairfax portfolio. He just keeps putting money in. A short Google search of who he is, is all anyone needs for the best endorsement on this stock. Only Warren Buffett could be a better endorsement, but he doesn't understand tech or invest in tech. IBM being the obvious exception, but not because it's a tech company in his words.
I believe this year or next is when Blackberry starts taking the market by storm. This is going to be a huge turnaround success story and will be case studies in universities.
AI
