BlackBerry Ltd. (NASDAQ: BBRY) is a Canadian telecommunications and wireless equipment company. Best known for its BlackBerry smartphones, the company is trying to revive its smartphone business with new models that include top of the line security features and the physical keyboard. This strategy has been unsuccessful so far this year, as the stock price has fallen nearly 16% year-to-date. Now, the company has announced that it will release a phone using the Android operating system instead of its own. BlackBerry is bullish according to the algorithm for both time horizons. The signal strength for the three-month time horizon is not as strong as that for the 1-month time horizon.
During the last week of March, BlackBerry Ltd. (BBRY) announced its earnings report from the most recent quarter. While the company surprised market analysts with adjusted income per share of 4 cents, compared to a loss of 8 cents a year earlier, revenue continued to fall. After posting revenues of $976 million in the same quarter a year ago, it fell to just $660 million as BlackBerry sold only 1.6 million smartphones. While the falling revenue is disappointing to investors, the job the management team has done so far since taking over sets the company up as an interesting investing idea looking ahead to 2016.
BlackBerry now offers their BBM Protected messaging service at a $29.99 premium.
The general public is concerned and frustrated at the lack of solutions for privacy in their web browsing and messaging.
BBM Protected should be a free part of any BlackBerry mobile devices, thus promoting phone sales and encouraging iOS and Android users to switch.
Bullish algorithmic analysis contradicts the currently bearish analysts’ forecasts.
Algorithmic Analysis
BlackBerry just hit a 9-month low at $8.80, and as of now is trading at around $8.90. Analysts on both Yahoo Finance and MarketWatch are bearish regarding BlackBerry. The market forecast self-learning algorithm at I Know First contradicts this bearish outlook on BBRY. The prediction engine says BBRY has one of the strongest Buy signals for the 1-year horizon. The positive +53.79 algorithmic signal says BBRY is currently undervalued, and bottom numbers 0.1 indicates it has a high probability of going up in price over this period. The 3-month forecast is also bullish.
In our previous article, after receiving strong bearish signals for Blackberry (BBRY) we recommended to short sell the stock in the one-month horizon. This eventually materialized to a decline of over 10% and a nice short profit. The problem was that Blackberry had no estimable value, rather very speculative guesses by the market and investors. Recent rumors that Samsung (005930.KS) might be pursuing Blackberry patents might add enough implied value to make the stock an interesting investment. Why Blackberry Is Worth Looking At Every piece of information we receive has a meaning, sometimes more valuable and sometimes less. When the news broke out that Samsung was bidding on Blackberry it was a much more significant event than most people realized. In fact, the information was the first estimate as to what the company’s worth might actually be in the future. Below are some obvious and simple conclusions, assuming the bid was real - which has recently been confirmed by various sources.
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John Chen’s promise of two new $400 BlackBerry Android phones being a positive development.
