Many investors are claiming that an investment in BlackBerry (TSX:BB)(NYSE:BB) could be one of the most sure-fire wealth decisions you can make today. However, as great as turnaround stories can sound, they are very tough to execute. Management will need to make many changes, and even then, the company may not be able to catch up to its competitors that have surpassed it. In this article, I will discuss whether you should choose to invest in BlackBerry today.
What has been happening with BlackBerry?
Most people remember BlackBerry as one of the pioneers in the smart phone industry. Indeed, the company was a leader in the early days of smart phone adoption. Unfortunately, in 2011, competitors such as Apple and Android began to catch up and eventually surpass the company. As BlackBerry sales started to decline, the company’s stock ended up dropping over 97% from its all-time highs. In 2013, John Chen was appointed the executive chairman of the board and interim CEO.
These are positions that he continues to hold to this day. Investors often point to Chen’s leadership as one of the key factors in making BlackBerry an excellent company to invest in. Prior to joining BlackBerry, Chen was the CEO of Sybase. When he joined that company, Sybase was struggling immensely. Under his leadership, Chen transformed the company from a slow-growing mature company to a high-growth innovator. Sybase was eventually acquired by SAP for $6 billion.
Today, BlackBerry has been undergoing a transformation from a struggling phone manufacturer to becoming a leader in cybersecurity. The company offers many services that will only become more essential, as companies keep their employees working from home. There are many signs of a successful turnaround, but it is unclear how the story will play out.
Which company looks like solid buys moving forward?
One company that I like more than BlackBerry is Docebo (TSX:DCBO). Just like BlackBerry, Docebo’s services are experiencing major tailwinds. Because of a more prominent work-from-home paradigm, companies have been using Docebo’s platform to administer employee training. The company’s platform is trusted by names such as Uber, Thomson Reuters, and Walmart.
Through Docebo’s platform, managers are able to more effectively monitor and assign training activites. Docebo plans to keep growing organically in the near future. It also plans on growing through acquisitions and into new geographic locations eventually.
Docebo’s executive team owns a large portion of shares outstanding. Overall, individual insiders own about 74% of Docebo. CEO Claudio Erba owns 5.11% of the company. This indicates to investors that the management’s goals are aligned with theirs.
While BlackBerry could have all of the makings of an excellent turnaround story, successes of this kind are extremely rare. If anyone will be able to lead the company in such a story, John Chen is the man for the job. If you are interested in a company that appears to have just as many tailwinds working in its favour, then I would suggest looking into Docebo.
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.
Fool contributor Jed Lloren owns shares of Apple and Docebo Inc. David Gardner owns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends BlackBerry, BlackBerry, and Uber Technologies.