BlackBerry

Prem Watsa investments and stake holding in Blackberry Ltd (NASDAQ:BBRY), as of May 15, stands at 46,699,700 shares. At present prices, this is roughly $416,510,000 in value. This makes Fairfax Financial Holdings Ltd the second largest stockholder of BlackBerry Ltd (NASDAQ:BBRY), in the quarter.

Many hedge fund firms are bullish about BlackBerry Ltd (NASDAQ:BBRY) in the near future. The upside many are willing to see is the company’s apparent technology thrust into the Internet of Things. While there is nothing much available about its work in Internet of Things, the company is pioneering its way there apparently. Secondly, analysts and hedge fund and financial institutions are viewing the company’s QNX as the most profitable of the secure-smartphone maker’s offerings. Besides, BES 12, holds its own against the best in the industry. Therefore, the scope for BBRY going forward in this stream is unlimited.

Of the many financial services companies, Fairfax Financial Holdings Ltd (OTCMKTS:FRFHF) believes in the Canada-based smartphone maker. Prem Watsa-backed Fairfax Financial Holdings Ltd is not the only other company which continues to hold a strong interest in BBRY, after Chen himself.

Apparently, it is not just Prem Watsa who sees the upside in BLackBerry Ltd (BBRY). One other very interested investor is the Kahn Brothers. Recently, the company is known to invest more in the BlackBerry Ltd (NASDAQ:BBRY. The Kahn Brothers has acquired more shares of BlackBerry Ltd increasing the number from 289,960 to 1,846,010 shares.

The number of shares of BlackBerry Ltd (NASDAQ:BBRY) held by Fairfax Financial Holdings Ltd (OTCMKTS:FRFHF) was revealed by its Securities and Exchange Commission filing, 13 F. The filing was for the first quarter of 2015.

Prem Watsa urging release of Q20

Prem Watsa was recently found persuading Chen to move ahead of schedule and release Blackberry Q20 earlier. However, it did not happen and now the wait continues for Blackberry Ltd, to release it at its convenience.

BlackBerry Ltd (NASDAQ:BBRY)’s CEO John Chen recent efforts to shift the company towards the software business, could prove lucrative in the long run while cutting down the burden of hardware business.

7 COMMENTS

  1. Blackberry (BB) will sell, and they are marketing but it is the company they are marketing and not the products to the public. They are marketing the company to prospective buyers, (Samsung, Microsoft, Lenovo, Apple, to name a few) . The new owner of BB will be able to sell BB Z10 under their name and this way possibly feel there’s less confusion by not marketing directly to public at this time. It seems that BB would like the new company to market the OS as a NEW OS and possibly rename it under the buying company with BB security and great new OS.

    If no one knows about it? It’s still new

  2. Isn’t the Q20 the working name for The Classic which has been released already and has been picked up by T-Mobile?

  3. Good point, I think one of the main reasons is that the smartphone market is at saturation point with too many players on the field and I think that’s why BB is shifting away from hardware.

    I believe the real upside is yet to come until the IoT gains momentum…that’s where BB will play a major role..let the others try to catch up then.

  4. I agree that marketing is needed. Most people who see my Passport on a conference room table are interested, but the sentiment usually indicates that they didn’t realize BBRY is still in business. Now that carriers are coming back on board I hope awareness will increase along with stepped up marketing.

    The product quality and security is there. Advertising is needed to make people realize we’re still in business.

  5. It’s extremely expensive to gamble on marketing, and it’s a gamble because the brand is already known around the world, but the Brand Image is extremely poor, to put it nicely.

    This is my personal opinion, but the approach I believe they are taking is to allow the quality of the products reset the brand to at least a neutral position (this could take awhile) and once that upward trend has been initiated, then implement a more active marketing scheme.

    As a BB user, I love my Z30 and have used the Passport quite a bit, and I love both.

    As an investor, the last thing I want the company to do is break the bank on a global marketing project that will likely fail, if implemented too soon.

    I do agree though, there are a lot of people who don’t realize BB’s are still being made. Unfortunately, most of those people would not purchase one at this time, purely out of Brand Image.

  6. All the main planks of the mobile industry’s only single vendor end-to-end secure solution are now in place. Devices and upgrades are fine from a product evolutionary perspective, but there are now no fundamental reasons why they should not be seeing incremental growth. It may be modest at first but next quarter we should see a clear evidence of this upward trend. This is why these larger holders are buying now as the capitalization of this restructuring was paid for by the folks who bought stock at $60+. It should be all upside from here unless JC really misses the market.

  7. The biggest problem with Blackberry currently is not its quality, but marketing. Blackberry under JC’s leadership has come quite far, and expanded its offerings in terms of productivity significantly. Quality wise, especially from security & productivity perspective, it’s second to none. Yet, there’s hardly any advertisement spend to focus on these. Wonder why there’s so little focus on product marketing.

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