What a Difference an Hour Makes

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Shortly after two financial analysts got done flogging BlackBerry (BBRY) back into submission this week, in fact about seven hours after Baird analyst William Power lowered his price target to $9, the stock shot up dramatically from $9.69 to 12.60. A 29.71% climb within a half hour as if to show him just what he is full of. Oops.

 

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Why $9 ? Mr. Power apparently has the power to see into the future far enough to tell us that the Classic just won’t provide the expected revenue. Expected by who? That is the manipulatable variable isn’t it? Set a high expectation to assure a disappointment when revenue does not meet “expectations” and you can assure a drop in stock price.

What happened? Analysts have consistently underestimated BlackBerry’s tech portfolio, just patents to begin with, but apparently Samsung sees the value of the company.  And that value appears to be $7.5 Billion.

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A little red in the face Mr. Power? And what about you our old friend Mr. James Faucette of Morgan Stanley? Why, wasn’t it just the other day that you put on your blinders and took a narrow view of the company’s potential:

 

“BlackBerry was at or near the top in several categories like “No plans to evaluate,” Mr. Faucette wrote in a report on Tuesday, adding “hardly the indication of burgeoning interest” to support the company’s share price.

 

I wonder how those poor sheep who sold after listening to Mr. Faucette  last week and Mr. Power just today are doing right about now? How’s the pit in the stomach feeling? Next time if you want to be informed about investing in BlackBerry? Stay tuned to UTB.

Analysts look at numbers, they don’t seem look at potential, they act like they can predict the future with certainty, so the blind investors follow right along with what they say as if at a tennis match.

Sad really.

 

UPDATE:

Samsung offer may be just a rumor. Further evidence of the (nervous) investor sheep mentality.

Blackjack

I am a long time BlackBerry user and fan. Beginning with the 7520, I have recognized the value of subtle productivity enhancements in BlackBerry devices for business communication and have never since strayed. Even when the iPhone took the market by storm, I was unimpressed, because it did nothing to help my business needs. Currently enjoying my one handed dream phone, the Classic! BB10 with a toolbelt! Today I contribute to UTB whenever I feel that I can help enlighten someone on the benefits of using BlackBerry over any other platform.

  • Nice, BJ. Thanks. I gotta get my Bloomberg app opened more often so I can track the BBRY share price and stay in touch.

  • razrrob

    If I recall correctly, Mr Faucette’s employer, Morgan Stanley, owns substantial shares in Apple. Maybe that explains his unfounded opinions regarding BlackBerry

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