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BlackBerry Ltd T.BB

Alternate Symbol(s):  BB

BlackBerry Limited is a Canada-based company, which provides intelligent security software and services to enterprises and governments worldwide. The Company leverages artificial intelligence (AI) and machine learning to deliver solutions in the areas of cybersecurity, safety, and data privacy and specializes in the areas of endpoint management, endpoint security, encryption, and embedded systems. It operates in three segments: Cybersecurity, IoT, and Licensing and Other. Cybersecurity consists of BlackBerry UEM and Cylance cybersecurity solutions (collectively, BlackBerry Spark), BlackBerry AtHo, and BlackBerry SecuSUITE. The Company’s endpoint management platform includes BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces solutions. The IoT consists of BlackBerry QNX, BlackBerry Certicom, BlackBerry Radar, BlackBerry IVY and other Internet of things (IoT) applications. Licensing and Other consists of the Company’s intellectual property arrangements and settlement award.


TSX:BB - Post by User

Comment by BuddyBarryon Feb 15, 2022 8:08am
155 Views
Post# 34429132

RE:RE:RE:RE:Blackberry stock price hinges on John Giamattios performance

RE:RE:RE:RE:Blackberry stock price hinges on John Giamattios performanceCyber at $135 mil for Q4 would be 10.6% over last Q4 and sequentially (from Q3) an increase of 5.46% - which annualized is a touch over 30% growth rate for Cyber. Guidance will be important but based on BMW and other wins, and CISA / JCDC news slip, things looking up. Anaylzed, the market is valuing Cyber at basically zero. Too many are ignoring looking at BB correctly. But we can be sure that FifthDelta (just invested over $100 million at about $9.50 USD), Goldman Sachs (who not long ago tripled their posiition) and many others like them are looking at BB precisely along the following lines. Recent numbers have kicked around on this and other boards and if we put them together they make sense. Some guy by the name of Gio over on SA has assumed a $2 bil valuation for IOT and IVY, and therefore the balance he argues is Cyber and hence the SP fairly vallued? He is typical. Ignoring the true value and making simpleton arguments. Not singling him out just underlining a point. The problem is the multiple he uses for IOT is arbitrary and he just throws IVY in with that (meaning in fact placing no value on IVY). He is not alone and things like cash, or equivalents, of backlog, or tax credits are just ignored. BUT they are worth something and should not be ignored. That is value and when the market focusses (and it will) this will get recognized. A handful at ST (@bvr and others) have provided very useful numbers. Cash and equivalents equal $772 million. Tax credits equal $441 million. Patent Sales is $600 million ($450 million upfront). And backlog is $450 million. Add these up and we get $2.263 billion. Even if we ignore backlog and tax credits (we shouldn't) we get $1.372 billion. Then we have IOT, growing at 40%. The best comp is an actual transaction with a comparable (not some random p/s multiple slapped on). WindRiver is that example. It had $400 million in sales (only double BB's IOT) and probably not lgrowing at 40%, and most would suggest what BB has is more innteresting with more potential but we can ignore that. WindRiver was acquired recently for 10.3X sales (approximatlly $4.3 billion). Why shoukd BB's IOT be worth less? Let's not forget 40% growth. Using 10.3X on expected year end BB IOT number of $181 million, we get $1.8643 billion value for BB's IOT. Add all these numbers up and we get $4.1273 billion. That gives NO value to both BB's cyber security and NO value to IVY. Meaning at the current SP we get those for free. If we ignore tax credits and the backlog we get $3.232 billion, which suggests a valuation for Cyber and IVY of $726 million. Closest comps to IVY are Wejo and Otonomo and they trade at 200X sales (and that is well down from higher levels - in part due to market pullback). Closest comps to BB Cyber are names like Crowdstike and SentinelOne and they trade at 33X and 55x (and yes we know their cyber is growing faster but not that fast and it's well discoiunted in those share prices). Even the most boring companies in cyber tade at 5x-10X. At this BB share price one gets Cyber for free (or 1X if we ignore tax credits and backlog). And IVY as well comes for free. And IOT growing at 40%.
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