Successful Inv says keep holding BlackBerry
Successful Inv says keep holding BlackBerry
2014-04-01 15:57 ET - In the News
The Successful Investor, in its April, 2014, issue, says keep holding BlackBerry Ltd., recently $10. The Investor said buy in March, 2011, at $63, and again in November, 2011, at $24. BlackBerry changed its name from Research in Motion on Feb. 4, 2013. Assuming an investment of $1,000 for each of the two buys, the $2,000 position would now be worth $560. In response to weak sales of its new BB10 smart phones, the company has cut 40 per cent of its work force and sold most of its Canadian real estate. It has also agreed to jointly develop new smart phones with Taiwan-based electronics maker Foxconn. In addition, BlackBerry is shifting away from making consumer products, and focusing on managing mobile networks for large corporate and government clients. A group of private investors, including Fairfax Financial Holdings, recently bought $1.25-billion (U.S.) of BlackBerry debentures. These debentures pay annual interest of 6 per cent, mature in 2020 and are convertible into BlackBerry shares at $10 per share. At Nov. 30, 2013, the mobile phone maker held $3.2-billion in cash; this should help it with its restructuring plan, which it expects to complete by mid-2014. The stock remains a hold.