Blackberry (Nasdaq:BBRY) rattled the market with a loss when a profit was expected. Big sell off in pre-market trading. Long weekend in Canada and July 4 in US means shortened attention spans and therefore opportunity for the nimble and adroit. Yes its a shock but take this into consideration.
- They cleaned up a mess in Venezuela. Would have been nice if they could have been more transparent about it earlier. But so be it. Operations in banana republics go like that.
- Revenues are up. Cash is up. Customers counts are up. These are all positive metrics.
- If you believe Blackberry should be sold off than consider the Venezuelan write-offs necessary adjustment. a reasonably savvy buyer would not give you value for the problem.
You can question the investor relations savvy of the management team by releasing information on the last day of the quarter causing funds to respond in panic mode. I would manage the cycle differently.
George Gutowski writes from a caveat emptor perspective.