Well, it’s official: BlackBerry (TSX:BB)(NYSE:BB) stock is officially a buying opportunity. On Wednesday, BlackBerry announced a new business relationship with Canadian Pacific Railway. Canadian Pacific will deploy BlackBerry Radar across 2,000 domestic intermodal chassis!
BlackBerry stock has been gaining in popularity the past year on rumours of a crucial turnaround. The stock doesn’t offer a dividend, but traders have undervalued it at only $7 per share at the time of writing.
Aspiring Canadian retirees should view BlackBerry stock as a substantial investment for the next 25 years. A massive deployment like this is bound to bring in much-needed revenue growth for BlackBerry to officially bounce back from its failure to compete with the Apple iPhone back in the early 2000s.
A large order like this will also enhance the company’s reputation and value proposition to new shareholders. Canadian Pacific Railway is just one of Canada’s railroads planning to use artificial intelligence and machine learning technology to augment safety and security initiatives on Canada’s railway system. If Canadian Pacific Railway signed onto BlackBerry technology, Canadian National Railway might also follow.
BlackBerry Radar secures Internet of Things
BlackBerry Radar will monitor the train chassis, containers, rail cars, and equipment and provide real-time information and analytics on location, motion, mileage, utilization, dwell, and turn times.
Stored in the cloud, Canadian Pacific will use the information to improve asset utilization, reduce costs, and improve customer service.
Even better: the technology is so easy to install that it isn’t out of reach for smaller businesses to eventually invest. The technology allows for a scalable business model. Easy to install equipment means that logistics, freight, and trucking companies can also use this technology to watch over crucial business assets carefully.
BlackBerry innovating electric vehicles
At the beginning of the year, the Canadian government gave BlackBerry $40 million in federal funding to research and develop autonomous, cloud-connected cars.
Millions of vehicles on the road today already use QNX software to provide driver assistance and hands-free features. The additional funding will give BlackBerry an advantage over foreign competitors to expand upon existing products.
On Wednesday, Arrival, a U.K.-based electric vehicle rival to Tesla, revealed that the company would power autonomous-ready commercial vehicles using BlackBerry QNX technology. The contract is a substantial win for BlackBerry and should boost earnings projections over the next decade.
BlackBerry’s stock price should appreciate along with the higher earnings projections. The stock is still undervalued even after these groundbreaking announcements. The market should be reacting to a higher degree, but the stock price is flat today.
Canadian investors should take advantage of the slow activity in the stock and pick up new positions. Investors are more than likely reacting slowly to BlackBerry’s renewed success because of the psychological fear of a repeat 2008 when the stock surged to over $100 to crash down to $60.
BlackBerry stock is perfect because it’s a low-price option with business activities in many complementary high growth technology verticals, allowing for greater efficiency or economies of scope. Economies of scope refer to cost savings from producing multiple, related goods.
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Fool contributor Debra Ray has no position in any of the stocks mentioned. David Gardner owns shares of Apple, Canadian National Railway, and Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Apple, BlackBerry, Canadian National Railway, and Tesla. The Motley Fool recommends BlackBerry and Canadian National Railway and recommends the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. BlackBerry is a recommendation of Stock Advisor Canada.