I’ve been pounding the table on BlackBerry (TSX:BB)(NYSE:BB) stock for most of 2020. The stock skyrocketed into the stratosphere on the back of news it had partnered with none other than the great Amazon.com for its vehicle data project named IVY. BlackBerry stock went bust as quickly as it boomed.
This was before the name caught the attention of the hungry army of retail traders browsing through Reddit’s popular forum WallStreetBets (WSB). WallStreetBets was made famous for its unprecedented short squeeze on shares of GameStop. The folks on the forum brought the pain to the big-league hedge funds who were short the stock. It was truly the mother of all short squeezes or at least the most remarkable one since Volkswagon in 2008.
BlackBerry blasts off on the back of Reddit’s WallStreetBets
Once WallStreetBets set its sights on BB stock, shares really blasted off, sending shares above the $30 mark for the first time in nearly a decade. I urged investors to take profits from their BlackBerry shares before the WSB-fuelled speculative pop had a chance to reverse course. Indeed, this is exactly what happened, and it didn’t take long, as controversial broker Robinhood pulled the brakes on the speculation frenzy with trading restrictions across numerous WSB favourites.
Today, BlackBerry stock is back at $15 and change. The volatility hasn’t calmed down yet, though, with shares taking a 6% hit to the chin on Monday’s trading session. Could BlackBerry be headed back to the single-digits? I certainly wouldn’t be surprised if it did.
While BB stock is still my favourite “WallStreetBets stock,” given it actually has promising fundamentals and a realistic turnaround plan, I’m not comfortable with recommending the name while it’s hogging the media spotlight. Despite shedding over half of its value, the name is still up nearly 300% from its March 2020 trough. And with many folks likely still in the name for a shot at making a quick buck, I do think more weak-handed investors could stand to throw in the towel over the near-term.
If you’re hungry for long-term gains but don’t want to risk your shirt, consider Kinaxis (TSX:KXS), one top growth stock that’s too undervalued for its own good.
A screaming bargain in the SaaS space
Kinaxis is a developer of supply-chain management solutions, among other pieces of software that help firms iron out the wrinkles in operations. Supply chains can be a tough beast to tame. The COVID-19 pandemic just served to exacerbate the complexities involved in the supply chain severely. The disruptive impact of COVID-19 on supply chains has allowed Kinaxis to win big in 2020.
The stock has been on the retreat of late now that the pandemic’s end is in sight. But I’d argue that the demand for the firm’s vital platform is likely to remain robust for many years after this pandemic ends and as the firm’s offering gets stronger.
The stock trades at 16.7 times sales and is one of the cheaper Software-as-a-Service (SaaS) plays out there.
