Takeover Stocks: BlackBerry (BB)
Takeover Stocks: BlackBerry (BB)
More
Source: Shutterstock
On this site late last year, Larry Ramer argued that BlackBerry (NYSE:BB) was a prime takeover target. Ramer isn’t alone in that argument. Noted short-seller Citron Research made a similar claim last year in arguing that BB stock had the potential to double.
Rumors of potential acquirers have swirled for some time. BlackBerry of course almost went private back in 2013 at $9-per-share. Two years later, the company reportedly was in talks with Samsung about an acquisition.
There’s still a logical takeover case for BlackBerry at the moment. The phone business is gone, leaving an attractive software business. The QNX operating system has a real role to play in ensuring security for autonomous driving. BlackBerry’s patents have real value, with potential upside from a filed suit against Facebook (NASDAQ:FB). And with over $2 billion in cash on the books, another go-private transaction could work as well.
BB stock, meanwhile, has pulled back below $10 despite a Q1 earnings beat. Investors are worried that the company’s turnaround simply isn’t progressing fast enough (indeed, I’ve made that argument myself). But with real value in the software and the nameplate, it simply may be that the turnaround could be better executed under different ownership.
https://finance.yahoo.com/news/18-stocks-could-takeover-targets-190016181.html