- What did he say?
Revenue is down?As the anti-BlackBerry media rushed to press with anything negative they could glean from the Earnings Report this morning a lot of skittish investors rushed for the panic button.We got headlines such as this:
BlackBerry Ltd. (BBRY) Posts Minuscule Profit In Fiscal Q3 As Revenue Continues To Slide
John Chen in response said:
“We told them that this quarter the revenue would be lower, and none of them listened — they jacked their revenue up,” he said.
So BlackBerry dumped a lot of the speculative unfaithful uninformed investors. Thank you! Buy time!
After the E.R. the stock immediately dropped from 10 to 9.23.
I guess they missed the part that BlackBerry had posted a profit that exceeded expectations. I guess they missed the concept that profit is a good thing even if revenue is down , because it indicates that the company is more efficient. I guess they missed the Boeing, Ocean Capital Investments, Nanthealth, Samsung and Secusmart deals.
I guess they missed the part that the Classic is already selling better than the PassPort at launch, which was damn good all in itself, demand outselling supply in both cases. I guess they didn’t think long enough to realize that the potential of both of these hot sellers is not even reflected in the Q3 earnings.
Mr. Chen blamed the shortfall partly on the unexpected success of the new oversized Passport smartphone as BlackBerry scrambled to meet higher-than-expected demand. The company was unable to deliver all orders in the quarter on time, meaning the revenue from many of the phones will only appear in the fourth quarter. In another welcome development, the response to this week’s launch of the Classic, a smartphone aimed at diehard users, was positive. Unlike recent BlackBerry products, carriers seem willing to promote the new device.
In a true Tortoise and Hare scenario, the jumpy panicky Wabbit sold out as the slow wise Tortoises began to investigate and dig in to the real news. These are the investors who will win the race.
Apparently, those in the know were hovering over the buy button. They understand that BlackBerry is on the verge of retaking Enterprise by Storm! Those who have gambled against them are the losers
As of 1:41 PM EST, the stock has already nearly recovered to yesterday’s close, the skittish rabbits being immediately and slowly replaced with slow steady long term investors. Silly Wabbits.