The year 2014 was a year of accomplishment and turnaround for BlackBerry Ltd. (TSX: BB)(NASDAQ: BBRY). After losing roughly 85% share value over the last five years, the Canadian smartphone maker has clawed its way back. Compared to the previous year, BlackBerry has regained about 60% of its share price.
The turnaround story of BlackBerry is by far my favourite one this past year – there’s nothing like a good comeback story to inspire you. And I continue to believe that 2015 will be an even better year for the company. Here’s why.
Finances: A year ago, BlackBerry was a hopeless case, burning cash left, right, and center. But 12 months since the appointment of new CEO John Chen, the company reported a positive cash flow of $43 million for the previous quarter, despite having a lower than expected revenue. Mr. Chen continues to reassure investors that his company is only a quarter or two away from being profitable again. And based on Mr. Chen’s track record and remarkable leadership skills, I’m in the bullish camp for BlackBerry.
Handset sales: December saw the launch of the new BlackBerry Classic – a device that many insist is the answer to the company’s troubles of luring back customers. This new device is created syndicate the BlackBerry Bold’s much-loved keyboard feature with the operating system of the BB 10.3.1 that supports a superior overall product. Mr. Chen still has an uphill road to climb to reach his goal of selling 10 million devices, but between the “new love” for the Classic and the strong sales of the Passport, that target just might be reached in 2015.
Technical chart: I’m more of a fundamental investor than a technical one. But yesterday, a colleague pointed out that the investment research tool, The Profit Scanner, revealed a technical pattern on BlackBerry’s charts that indicates the stock will soar higher than its current 52-week high in the first quarter of 2015. The chart reveals the company’s shares could jump double-digits by Valentine’s Day.
With shares currently at about $10.90, the company is ridiculously cheap. But investors can, and should expect some volatility in the coming few quarters. However, that’s a given when dealing with “turnaround” companies. I definitely have my bets placed on BlackBerry.
