Summary: OVERPRICED
Score: 4/20
MOS: 0%
Share Price: $13
Sticker Price: $3
Is BlackBerry Limited stock a good buy?
BlackBerry Limited is a Canadian multinational company specializing in enterprise software and the Internet of things. They were founded with the name RIM (Research in Motion) in 1984 and are based out of Waterloo, Ontario, Canada.
Here are some interesting facts on BlackBerry…
- In 1988, RIM became the first wireless data technology developer in North America.
- In 1996, RIM introduced the interactive pager, the first two-way messaging pager.
- In 1999, RIM introduced the BlackBerry 850 pager.
- Despite the arrival of the first Apple iPhone in 2007, BlackBerry sustained unprecedented market share growth. In 2008 they hit an all-time share price high of $138.
- Even as the company continued to grow worldwide, investors and media became increasingly alarmed about the company’s ability to compete with devices from rival systems iOS and Android. The share price eventually went down to $45 in 2010 and by 2013 the share price was at $13.
- In 2013, RIM officially changed its name to BlackBerry but even a name change couldn’t revise the stock.
- In 2014, CNN released an article citing BlackBerry as one of six endangered US-Canadian brands.
BlackBerry has been another recent topic on WallStreetBets along side GME and AMC.
At the moment, BlackBerry is one of eight specific stocks currently restricted for trading on Robinhood. As sited on The Motley Fool, Robinhood states that its customers are currently not permitted to buy new shares of BlackBerry if they own 700 or more shares, nor buy new options contracts if they own more than 700 contracts. Robinhood customers are permitted to sell their shares if they own more than the limit, however.
FYI… the eight stocks with restrictions on Robinhood include:
- AMC (AMC Theaters)
- BB (BlackBerry)
- EXPR (Express)
- GME (GameStop)
- GNUS (Genius Brands)
- KOSS (Koss Corporation) – Based out of my home town Milwaukee, WI
- NAKD (Naked Brand Group)
- NOK (Nokia)
Recently, the price went from $7 on up to $25 and back down to $11 within less than a month. That’s a 257% gain and 56% loss.
This is a perfect example of an emotional driven “trade” not a long-term “investment”.
Now let’s take at the numbers. This could get ugly…
Revenue by Quarter (Found on the Income Statement)
Q1 2020 = $371M
Q2 2020 = $288M
Q3 2020 = $347M
Q4 2020 = $287M
Revenues are all over the place. The most recent quarter shows a massive drop.
Net Income by Quarter (Found on the Income Statement)
Q1 2020 = -$54M
Q2 2020 = -$890M
Q3 2020 = -$30M
Q4 2020 = -$171M
Net income is consistently negative and falling fast.
EPS by Quarter (Found on the Income Statement)
Q1 2020 = -.1
Q2 2020 = -1.6
Q3 2020 = -.06
Q4 2020 = -.03
EPS is consistently negative.
Net Change in Cash (Found on the Cash Flow Statement)
Q1 2020 = $41M
Q2 2020 = -$44M
Q3 2020 = $40M
Q4 2020 = $37M
The Net Change is Cash is surprisingly positive but it’s falling.
Total Assets (Found on the Balance Sheet)
Q1 2020 = $5.2B
Q2 2020 = $4.4B
Q3 2020 = $4.13B
Q4 2020 = $3.72B
The Total Assets are falling.
Total Liabilities (Found on the Balance Sheet)
Q1 2020 = $1.8B
Q2 2020 = $1.8B
Q3 2020 = $1.6B
Q4 2020 = $1.3B
The Total Liabilities are falling.
Total Debt (Found on the Balance Sheet)
Q1 2020 = $161M
Q2 2020 = $153M
Q3 2020 = $138M
Q4 2020 = $723M
The Total Debt is very high and has increased by 423%. This is alarming.
Total Equity (Found on the Balance Sheet)
Q1 2020 = $3.3B
Q2 2020 = $2.6B
Q3 2020 = $2.4B
Q4 2020 = $2.3B
The Total Equity is decreasing.
With a score of 4/20, this stock is way too risky. The overall financials are in terrible condition. The most alarming metric is the rising debt. What we have here is a sinking ship. Time to find a life raft!
—
The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.