Will BlackBerry Find a Bid?

With shares of BlackBerry (NASDAQ:BBRY) trading around $8, 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 co-founder Mike Lazaridis was co-CEO of BlackBerry until last year, still owns a considerable stake in the company, and has been approaching private equity firms Blackstone (NYSE:BX) and Carlyle (NYSE:CG) about a bid for the company, according to sources who spoke to The Wall Street Journal. Lazaridis’s 6 percent stake in BlackBerry and deep knowledge of the company would be useful to the various private equity firms interested in BlackBerry, although Friday’s earnings report, which revealed the company made half what analysts had been expecting in revenue for the second fiscal quarter, could complicate the quick sale BlackBerry had been hoping for.

T = Technicals on the Stock Chart Are Mixed

BlackBerry stock has not performed well in the last several months. The stock is currently trading at lows for the year, so it may still need time before it finds value. 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 slight below its key averages, which signals neutral to bearish price action in the near-term.


Source: Thinkorswim

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