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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.

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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.

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