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Guest wellmont

I still don't understand why the debt deal.

 

If PW thought BBRY needed the cash for whatever reason, the original $9 buyout wouldn't have delivered it. The money would've gone into the shareholders' pockets, not BBRY's balance sheet.

 

I have a hard time to reconcile the intention of the $9 buyout deal and that of the $1b debt deal. It appears to me they will achieve different things.

 

Any thought?

 

it's simple. pw didn't take it private because it needed cash (he wasn't going to buy any new equity). bbry raised $1b of Debt because it needed the cash. bbry is burning cash and needed to replace the cash it is going to burn. most stuff in business and investing is rose blumkin simple. and if it's not it ought to be.

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Guest wellmont

 

 

If "Good" is worth a billion then what is bbm worth?

 

different products. good competes with bbry enterprise services. bbm is a messaging platform that is Free and has no revenue associated with it from what I gather.

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  • 2 weeks later...

Anybody listen to the call? John Chen is so much more engaging/believeable than Thorsten Heins.

 

My only dog in this is FFH but the first 15 minutes of the call where Chen spoke was the best thing I've heard from this company in 3 years...at least he's developing a credible strategy.

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Guest valueInv

Anybody listen to the call? John Chen is so much more engaging/believeable than Thorsten Heins.

 

My only dog in this is FFH but the first 15 minutes of the call where Chen spoke was the best thing I've heard from this company in 3 years...at least he's developing a credible strategy.

 

What is his strategy?

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Anybody listen to the call? John Chen is so much more engaging/believeable than Thorsten Heins.

 

My only dog in this is FFH but the first 15 minutes of the call where Chen spoke was the best thing I've heard from this company in 3 years...at least he's developing a credible strategy.

 

What is his strategy?

 

31 black

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Guest wellmont

buy bbry under book value today! of course book value dropped 50% in the last six months so buyer beware.

 

here is my take away. bbry sold very few phones. Most of the phones were Old generation bb7 phones. it's essentially out of the bb10 phone business. the new partnership is for Asian emerging markets where I assume they will be selling bb7 phones, which is the only phone they seem to be able to sell. takeaway is bb10 is toast on modern smartphones. bb is defacto out of the handset business and this partnership is a fig leaf that allows them exit "with dignity" over time. Chen has around $2b to play with and a market cap $1.6b higher than that. you want small and mid cap stocks? take a look at bbry and marvel at the possible turnaround artistry of the new CEO.

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http://www.cnbc.com/id/101287530

 

There are no words.

 

 

Edit: There are a few words - they just lost more than the entire market cap. And, what was Prem thinking?

 

"While our Enterprise Services, Messaging and QNX Embedded businesses are already well-positioned to compete in their markets, the most immediate challenge for the company is how to transition the devices operations to a more profitable business model"

 

In other words our old business is on its way out and we have to start trying to find another one.

What you are investing in if you own BBRY is essentially a start-up that, while they have some cash, hasn't really figured out what their product or service is going to be yet.

 

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Guest valueInv

buy bbry under book value today! of course book value dropped 50% in the last six months so buyer beware.

 

here is my take away. bbry sold very few phones. Most of the phones were Old generation bb7 phones. it's essentially out of the bb10 phone business. the new partnership is for Asian emerging markets where I assume they will be selling bb7 phones, which is the only phone they seem to be able to sell. takeaway is bb10 is toast on modern smartphones. bb is defacto out of the handset business and this partnership is a fig leaf that allows them exit "with dignity" over time. Chen has around $2b to play with and a market cap $1.6b higher than that. you want small and mid cap stocks? take a look at bbry and marvel at the possible turnaround artistry of the new CEO.

 

Am I to understand that the stock is up 12% because they cut a deal with Foxconn to make more phones while writing down $1.2 B in inventory for phones they couldn't sell?  :o

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CC transcript:

http://seekingalpha.com/article/1909681-blackberry-ceo-discusses-f3q14-results-earnings-call-transcript?part=single

 

Takeaways from earnings release and CC:

 

-Hardware sell-throughs continue to decline and will likely decline for the next couple of quarters

 

-Break-up value continues to march downwards with cash burn, though that could stabilize in Q3 as required intangible acquisitions and capex purchases are drastically reduced at that time

 

-Intangible assets write-downs related primarily to prepaid licensing agreements (not patents or NOC)

 

-Goal for devices is to stabilize and manage to break-even (Foxconn manufacturing partnership is an example of action to achieve this).  After that occurs, Chen will evaluate what to do with that biz.  He expressed interest in possibly going forward with breakeven/low-margin device biz intended to drive monetization of BBRY software and services.

 

-Main focus will be on QNX and BES for profitability.  Specifically, the strategy will be to focus on security and secure communications for mobile, M2M, and payments.  Per user, per month base revenue model for enterprise who uses BES.  Also working on adding options that customers can purchase on top of base server (e.g., enterprise BBM for compliance and audit functionality)

 

-BBM will continue to be built out, but no clarity yet on how to fully monetize that, though they are exploring advertising model

 

-QNX continues to be crown jewel for mobile and M2M future, and BBRY is finally working on spreading it verticals other than automotive.  Also building a cloud-based platform for M2M communications.

 

-----

 

John Chen is legit.  It's nice to have some competency at the C-Suite.

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