BB low multiples makes it a great speculative opportunityif JJ Giomatteo turns the revenue stream up, stops the cash burn to achieve his first Bonus objective, the numbers roll out something like this:
But first a quick reference crwd a leader in tech with AI currently trades at 80x.
TECH currently trades at 20x regardless of profitability
bb a leader in secure machine RTOS AI, currently trades at 3x
BB Current_____________ $2.1B @ $3.43
BB End of March_________$3.5 - $$5.5B @ +/- $5.72
June AGM____________$5B - 9B @ $15
Assuming JJ achieves profitability June, share price moves accordingly to say $16 is market, BB remains valued at only 13x leaving another move upward to meet TECH at typical valuations of 20x.
BB with any success could leap during the next 12 months to $60 leaving the valuation room to move 100% and finally meet CRWD multiples from their 2019 $34 IPO.
The valueation leap will occur through a clear profit window as BB returns R&D and structures itself for sales growth dropping 20% of engineering costs because most of the heavy lifting of PRODUCT INVENTION is generally complete and focus can be placed on product improvement with product invention more instep with the market... considering it has taken 10 years to build out and finally launch QNX 8.0 this engineering cost reduction is no just a quaint idea but a stated reality from the newly minted CEO's lips at the
Click to watch the Needham Technology Growth Conference presentation China is now producing 23M EVs per year with the current built manufacturing capability to produce 75M. Remember the end of the last century, just 23 years ago, China had cornered the market on many electrical items like micro wave ovens, built, stock piled and ready to ship. We no longer think about the inconvenience of buying another kitchen appliance because China took the inconvenience out of the equation just as they are attempting today in automotive... Biden and before him Trump recognized this trend, but too late, the only thing left is Import Taxes on their EVs.
America lost the EV war, look at GM and Ford stumble weakly with almost daily media releases dealing with their EV troubles. The greatest problem is they have spent far too much time figuring out how to make money from the EV revolution while China was building out the solutions. GM and Ford were ok at building vehicles but they certainly aren't Technology Titans... they realized the move was afoot 20 years too late, then tried to be a Tech company when the products and patents had already been released.
GM and Ford need to focus upon what they are good at and like China design and produce what the market demands. China hasn't invented much and like GM and Ford purchase their technology outside. Like intermittent wipers RTOS, AI, QNX Audio are readily available, off the shelf.
BB are about to ride a wave of production utilizing more and more of their products, because, like China 's EV manufacturing advantage BB have built the foundation for the nacent EV product and App explosion.
JJ Giomatteo was the first of many recent steps BlackBerry will take from former hardware titan kum engineering machine to software growth company.
BB is a fully formed patent slinging fire brand that will soon have a wanted poster on all Fund Managers trading desks as they fill the need for their Technology Funds or just keep up with the Leader Funds that must add Symbols because they are a growth leader on an Index like NYSE.