The Motley Fool

Blackberry Turned a Profit! Now What?

Blackberry (TSX:BB,NASDAQ:BBRY) managed to handily beat consensus expectations with its quarterly release this morning.  Even though the company missed on the top line, the company’s adjusted profit of $0.22 eclipsed the estimated loss of $0.29 per share.  One million units of the new BB10 had been sold as of March 2, however the company’s subscriber base fell to 76 million from 79 million.

On the personnel front, Mike Lazaridis, the Blackberry’s (device) inventor and co-founder of the company, is severing ties by relinquishing his role as vice-chairman and director.  A clear sign that Blackberry, the company, has indeed entered a new era.

So?

The stage was set for some wild action in Blackberry’s stock today, particularly given the massive short position that exists.  Although there were some blips higher in pre-market action and a 7% surge at the open, the stock has settled back and it looks like just another day.

The media is likely to blow a lot of smoke in the near term, but in the grand scheme of things, today’s release provided Blackberry investors with very little to work with.  It’s going to take several quarters to form an accurate picture of the success of Blackberry’s new product.

Given the information void, today’s muted stock action is a refreshingly rational reaction by Mr. Market.  Until more results roll through, Blackberry shares remain nothing more than a gamble.

While Blackberry shares remain a gamble, there are a number of Canadian companies that are anything but.  Click here now for instant access to our FREE report that reveals 5 core Canadian portfolio holdings that you can buy right now.  Your brokerage account will thank you for the low risk returns that these stocks are likely to generate!

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Fool contributor Iain Butler does not own shares in any of the companies mentioned in this report at this time.  The Motley Fool has no positions in the stocks mentioned above.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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