Can New Products Help BlackBerry Move Higher?

With shares of BlackBerry (NASDAQ:BBRY) trading around $10, is BBRY an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

BlackBerry is a designer, manufacturer, and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software, and services, it provides platforms and solutions for seamless access to information such as email, voice, instant messaging, SMS, Internet, intranet-based applications, and browsing. Its products and services feature the BlackBerry wireless solution, the Research In Motion Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools, and other software and hardware.

BlackBerry is continuing to roll out new smartphone devices despite the uncertainty the company is facing in regards to whether the struggling smartphone maker will be purchased as a whole or split up into parts. BlackBerry launched its first “phablet,“ or smartphone with a screen 5 inches or bigger, Wednesday, Reuters reports. The Z30 is being launched at an event in Malaysia. Many are skeptical that the new device will gain much traction, as the phablet concept is relatively new and uncertainty about BlackBerry’s future is overshadowing its devices.

T = Technicals on the Stock Chart Are Mixed

BlackBerry stock has been fairly volatile over the past several quarters. The stock is currently attempting to establish value after its latest earnings announcement. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, BlackBerry is trading between its key averages, which signals neutral price action in the near term.


Source: Thinkorswim