InsightaaS: Seeking Alpha provides investment research, a perspective on the market that is often unrelated to the issues that are important to InsightaaS’s mission of exploring the ‘why’ in enterprise technology. The site does supply a steady stream of thought-provoking content, however, including this piece that is of interest not just to investors but to anyone interested in the future of the client device market.
From the post:
“When we saw BlackBerry’s increased balance of cash and investments, as well as the size of that balance relative to its market capitalization, we became intrigued. Surely there is value there, value that the market is missing. But as we examined the issue further, we came to a realization. Surely it isn’t this easy? If BlackBerry’s balance of cash and investments is as compelling as we believe, why are shares down nearly 28%? As we examined the issue in more detail, our opinion shifted. In this article, we will be focusing in depth not on BlackBerry’s operating issues, which a number of people have covered in detail, but rather its balance sheet, and why things are not as well as they seem. In our view, if BlackBerry’s trajectory fails to improve, its cash and investment balances, long seen as one of the pillars of the BlackBerry bullish thesis, is likely to begin exhibiting cracks, and thereby likely placing further pressure on the company’s stock price…”