Blatant Manipulation !!Preliminary Financial Warnings' report came out unexpectedly... one week before scheduled
Stock price dropped temporarily below its previous day closed of $10.82
Offer to buy and sell the Company at $9.00 ( below book valuation of $18.00)
happened almost immediately - two working days.
Watsa did not wait for the official Financial report.
Blackberry Management and Board has no right to hastily summoned a meeting
in such a short time to agree on selling out the Company for $9.00 without looking
over the Official Financial Report.
With no Debt and lots of Cash, there was no urgency to sell out.
Reasons for selling the Company were because it made losses
1) The Z10 phones that were introduced a few months ago, were not selling
fast enough because the prices were too high.. then why not sell the phones cheaper and not the whole company.
Company choose to write off Inventory
2) The CFO decided to change his method of recognizing Revenues. He choose
not to recognize certain shipment as Revenue until the phones are sold.
Then don't sell the Company for that, wait until those phones are sold
and recognized as Revenue or fire the CFO.
The reasons are silly, and in my opinion, it was blatant manipulaton