Q: Blackberry Ltd. Certainly not doing well and big drop on earnings. Is there a speculative opportunity here? Or is there a long term investment oportunity.
Thanks
John
Thanks
John
5i Research Answer:
The guidance was weak, and BB faces numerous challenges. But the company is still undergoing a strategic review, following overtures for a takeover. This remains a possibility, but it is hard to endorse on that alone. Fundamentals remain weak and much worse than expected. The balance sheet is OK but its large cash cushion is gone. Cash flow has been negative the past two years. Speculative as a possible takeover, but not really endorseable as a long term holding right now.