Canadian stock report - BlackBerry

CANA

BlackBerry down 2.4% in 2 days October 17, 2017 17:00 EDT

NEWS BITES - NORTH AMERICA

BlackBerry (TSX:BB), Canada's largest Communication equipment company by market cap, extended its slide on Tuesday, shedding an additional 11.0c (0.8%) to close at CAD14.12. The shares have dropped 34.0c (2.4%) over the past two trading days, compared with the S&P/TSX 60 Index which rose 1.6 points (0.2%) in the two days for a relative price change of -2.5%. Cumulative volume in the 2 days was 0.6 times the average 2-day volume of 2.5 million shares.

BLACKBERRY ISSUED 10 NEW PATENTS IN THE WEEK OF OCTOBER 17, 2017

BlackBerry (BB) has been issued 10 new patents by the USPTO and EPO.

Highlights in today's Report:

SECTION 1 BEARISH SIGNALS

Fundamentals, Technicals, Overbought/Bearish/Resistance Signals, Low Performance Indicator

SECTION 2 BULLISH SIGNALS

Fundamentals, Technicals, High Performance Indicators

SECTION 3 PRICE VOLUME DYNAMICS

Volatility, Moving Annual Return, Beta, Aggregate Volumes, Prices and Turnover Period

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

SECTION 6 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 7 REPORTED BUYING AND SELLING

SECTION 8 PATENTS

SECTION 9 STOCK BUZZ

SECTION 1 BLACKBERRY BEARISH SIGNALS

1.1 Fundamentals:

Overvaluation [compared with sector average]:

+ Price/Sales of 4.6 [2.7].

+ Price to Book of 6.7 [4.0].

1.2 Technicals:

+ The price decreased 0.6% in the last week.

1.3 Overbought/Bearish/Resistance Signals:

+ The Relative Strength Index (RSI) of 83.0 has penetrated the overbought line of 70, suggesting the price gain of 22.5% in the last 14 days is unusually high.

+ The stock is overbought according to the Williams % R indicator of -17.4, suggesting the price is close to its 14-day high of CAD14.71.

+ The Stochastic indicator of 91.6 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

1.4 Low Performance Indicator:

DescriptionValueRank In Market
Price to Sales4.6In Bottom Quartile

SECTION 2 BLACKBERRY BULLISH SIGNALS

2.1 Fundamentals:

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 1.8. Compared with the rest of the market the stock is undervalued.

+ The company is cash rich with Cash to Market Capitalisation at 10.8%.

+ Revenue growth and Net Profit margin have shown signs of recovery in recent quarters. [Quarter ended, all figures in %]

QtrRevenue GrowthNet Profit Margin
May 17314.7285.5
Feb 17-1-16.4
Nov 16-13.5-40.5
Aug 16-16.5-111.4
May 16-17-167.5

2.2 Technicals:

+ The present value of CAD1,000 (PV1000) invested one year ago in BlackBerry is CAD1,460, for a capital gain of CAD460.

PV$10001-week1-month1-year
BB.TSX9941,2421,460
S&P/TSX 60 Index1,0041,0261,096

+ The present value of CAD1,000 (PV1000) invested five years ago in BlackBerry is CAD1,829, for a capital gain of CAD829.

+ 5 years Multiplier in CAD = 1.829x

+ Compound Annual Growth Rate (CAGR) in CAD = 12.8%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in BlackBerry is $US1,426, for a capital gain of $US426.

+ 5 years ago CAD 1 equalled USD 1.0209

+ 5 years Multiplier in USD = 1.426x

+ Compound Annual Growth Rate (CAGR) in USD = 7.3%

Oct 17, 2017: CAD 1 equals USD 0.8

2.3 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverCAD20.3 million (US$16.1 million)In Top 3%
Price/MAP501.14In Top 5%
Price/MAP2001.2In Top 10%

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Volatility:

+ BlackBerry is at a discount of 10.8% to its 12-month high of CAD15.82 on June 01. It is also at a premium of 57.2% to the 12-month low of CAD8.98 on March 09.

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in BB would have produced a return of 46.0%.

BBClose (CAD)Annual Return %
Oct 1714.1246.0
1 Yr ago9.675.3
2 Yrs ago9.18(12.0)
3 Yrs ago10.4323.9
4 Yrs ago8.429.1

Close 5 years ago CAD7.72

3.3 Beta:

+ Beta: the Beta of BlackBerry stock is 2.0. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

3.4 Aggregate Volumes, Prices and Turnover Period:

[Volume Index or VI in brackets; 1 is average]

+ Nasdaq: BBRY.NASDAQ 8,254,900 [VI of 0.6] volume 85.19% of aggregate. Price: $US11.57.

+ Toronto: BB.TSX 1,435,479 [VI of 0.7] volume 14.81% of aggregate. Price: CAD14.12.

+ Aggregate volume: there were 9.7 million shares of BlackBerry worth CAD140 million traded today. The aggregate volume was 0.6 times average trading of 15.2 million shares.

The turnover rate in the 12 months to date was 69.96% (or a turnover period of 1 year 5 months). This average length of ownership of the stock at 0.7 times the average holding period of 1 year 11 months for stocks in the S&P/TSX 60 Index suggests a slightly larger number of speculators on the share register, making it less safe for long-term investors.

SECTION 4 RANKING

4.1 Global Rank [out of 47,797 stocks] and Rank in the American Region [out of 12,758 stocks]

DescriptionValueGlobal RankIn Am Region
MCap (US$)6B2,292879
Total Assets (US$)3.3B5,1411,941
Revenue (US$)1.3B5,6021,942
Net Profit (US$)(1.2B)42,13810,444
Price to Book6.728,5785,251
PV$1000 (1Year) US$*1,5277,5631,890
US$* Change (1Year) %51.67,2201,797

* 1 year ago CAD 1 = USD 0.76

Oct 17, 2017: CAD 1 equals USD 0.8

4.2 Independent Ratings

BlackBerry was ranked 998 in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2015; a deterioration over a year from rank 603 in 2014.

It is placed 362/2060 in BSS News Bites' ranking of Canadian performers in the past year, a percentile ranking of 82.

SECTION 5 BLACKBERRY FINANCIALS

Financials Summary

Year endedFeb 2017Feb 2016Feb 2015
Sales (USD B)1.32.53.3
Pretax (USD)(1.2B)(282M)(385M)
Net (USD)(1.2B)(208M)(304M)
EPS (USD)(1.0758)(0.4)(0.58)

Net profit deteriorated from -US$208 million in 2016 to -US$1.2 billion in 2017. Earnings Per Share (EPS) deteriorated from -40.0c to -$US1.08.

SECTION 6 BLACKBERRY PROFILE

6.1 Activities

BlackBerry Ltd is a designer, manufacturer and marketer of wireless solutions for the mobile communications market.

6.2 Industry & Sector

Classification LevelName of Sector
Economic SectorIndustrials
Business SectorIndustrial Goods
Industry GroupAerospace & Defense
IndustryAerospace & Defense
ActivityCommunication & Satellite Equipment

6.3 Top Management

The chief executive officer is John Chen and the chief financial officer is Steven Capelli.

6.4 Issued Capital

Based on 530,411,368 issued shares the market capitalisation is CAD7.5 billion (US$6 billion).

SECTION 7 REPORTED BUYING AND SELLING

Insider Selling

October 03: BlackBerry insider sells

BlackBerry (TSX:BB) insider Marty Beard sold 58,337 shares worth CAD659,739 on September 29. The selling price was CAD11.31. The shares hit a five-month high on the day.

October 03: BlackBerry insider sells

BlackBerry (TSX:BB) insider Steven E. Zipperstein sold 31,078 shares worth CAD351,464 on September 29. The selling price was CAD11.31. The shares hit a five-month high on the day.

October 03: BlackBerry insider sells

BlackBerry (TSX:BB) insider Steven E. Zipperstein sold 27,035 shares worth CAD304,579 on October 02. The selling price was CAD11.27. The shares hit a five-month high on the day.

October 03: BlackBerry insider sells

BlackBerry (TSX:BB) insider Sai Yuen Ho sold 30,000 shares worth CAD341,700 on October 02. The selling price was CAD11.39. The shares hit a five-month high on the day.

October 03: BlackBerry insider sells

BlackBerry (TSX:BB) insider Nita White-Ivy sold 7,977 shares worth CAD90,213 on September 29. The selling price was CAD11.31. The shares hit a five-month high on the day.

SECTION 8 BLACKBERRY PATENTS

Issued October 17, 2017

Suspicious portable device movement determination [9,792,462]

Method and system for dynamic cellular networking activation for virtual SIM service [9,794,418]

System and methods for data communications in a wireless communication system [9,794,770]

Discovering network information available via wireless networks [9,794,967]

Procedure for formulating a signal to interference plus noise ratio [9,794,850]

Method and system for transition of applications to a second cellular data networking interface for a virtual SIM service [9,794,419]

Optimizing the delivery of formatted email messages [9,794,364]

Method and apparatus for radio frequency tuning utilizing a determined use case [9,793,610]

Apparatus, and associated method, for notifying, delivering, and deleting media bursts communicated in a push-to-talk over cellular communication system [9,794,307]

METHODS AND DEVICES FOR CODING AND DECODING THE POSITION OF THE LAST SIGNIFICANT COEFFICIENT [EP3229473 (A1)]

To view more details on these Patents, click here

SECTION 9 STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

October 12: BlackBerry and BLU Products Enter into Patent License Agreement

WATERLOO, ONTARIO and MIAMI, FLORIDA--(Marketwired - Oct. 12, 2017) - BlackBerry Limited (NASDAQ:BBRY)(TSX:BB) and BLU Products announced today they have entered into a patent license agreement. This will result in settlement of all existing patent litigation between the two companies and withdrawal of pending actions in the United States.

October 10: BlackBerry Keeps Making Samsung Devices More Secure

WATERLOO, ONTARIO--(Marketwired - Oct. 10, 2017) - BlackBerry Limited (NASDAQ:BBRY)(TSX:BB) announced today it continues to improve its SecuSUITE for Samsung Knox solution which provides highly secure mobile voice and data communication for Samsung smartphones and tablets. Customers can now benefit from the integration of two key products: SecuVOICE to make secure phone calls and BlackBerry Unified Endpoint Management (UEM) platform to manage their devices.

October 06: BlackBerry Expands its Channel Ecosystem with Six New Partners in India

WATERLOO, ONTARIO--(Marketwired - Oct. 3, 2017) - BlackBerry Limited (NASDAQ:BBRY)(TSX:BB) announced today it has added six new partners in India, furthering the company's commitment to establishing and growing its global ecosystem of enterprise software partners and developers. As part of the BlackBerry Enterprise Partner Program, the following partners have been awarded Gold-level status and are well equipped to successfully design, architect, implement and support BlackBerry solutions in India:

October 03: BlackBerry insider granted Restricted Share Units

BlackBerry (Canadian:BB) insider Nita White-Ivy, has been granted Restricted Share Units on 17,889 shares worth CAD232,557. The transaction date was September 29. The shares last traded at CAD13.90.

October 03: BlackBerry insider granted Restricted Share Units

BlackBerry (Canadian:BB) insider Sai Yuen Ho, has been granted Restricted Share Units on 35,778 shares worth CAD465,114. The transaction date was September 29. The shares last traded at CAD13.90.

Contact: (519) 888-7465

Physical Address: 295 Phillip Street, Waterloo, ON, CA, N2L 3W8

State/Province/Country: Canada

Country of Incorporation: Canada

Exchange: Toronto Stock Exchange

ISIN: CA09228F1036

T:BB; TSE:BB; N:BB; CN:BB; BB.TO

PermID: 4295861766

CIK: BlackBerry Limited (formerly Research In Motion Limited)

Blackberry Limited, Blackberry Ltd

Source: www.BuySellSignals.com