Can BlackBerry Ltd (BBRY) Capitalize on Apple Inc. (AAPL)’s Security Woes?


Can Apple Inc. (NASDAQ:AAPL)’s loss be BlackBerry Ltd (NASDAQ:BBRY)’s gain? Some analysts on the Street think so. With the recent leaks of celebrities’ photos from Apple Inc. (NASDAQ:AAPL)’s iCloud, many concerns are being raised over the security features in Apple’s devices and services. Even though many people consider BlackBerry Ltd (NASDAQ:BBRY) as a bygone, if there is one mark that company made and continues to hold is its security features. The bad financial shape of BlackBerry Ltd (NASDAQ:BBRY) and whether the company can capitalize on this opportunity provided by Apple Inc. (NASDAQ:AAPL) was a topic of discussion between Gina Sanchez from Chantico Global and Craig Johnson from Piper Jaffray on ‘Talking Numbers’ on Yahoo! Finance recently

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“I think, right now BlackBerry Ltd (NASDAQ:BBRY) is surviving on borrowed time. By that I mean, a convertible bond offering that’s been keeping the company afloat, of $1.25 billion. They are losing money; their revenue is down almost 68.5%. Their ROE [return on equity]is like negative 162%. So, BlackBerry Ltd (NASDAQ:BBRY) is a challenge still […],” Sanchez said.

Sanchez added that it’s not that she is completely pessimistic about the company, since BlackBerry Ltd (NASDAQ:BBRY) still owns valuable assets like Blackberry Messenger, its enterprise software and QNX. Sanchez feels that BlackBerry Ltd (NASDAQ:BBRY)’s enterprise software is the most ‘hack-proof’ software in the context of the recent leaks.

Johnson mentioned that BlackBerry Ltd (NASDAQ:BBRY)’s chart shows a ‘longer bottoming’  pattern and fundamentals of the company are not that weak as one of the major customers of BlackBerry Ltd (NASDAQ:BBRY) is the U.S. government and, as of now, the U.S. government is not going anywhere else. Johnson feels that value investors have started to nibble on BlackBerry Ltd (NASDAQ:BBRY)’s shares. He added that the moves displayed by BlackBerry Ltd (NASDAQ:BBRY)’s current performance are compelling enough to buy the stock.

As of June 30, 2014, Carl Icahn’s Icahn Capital owns more than 52 million shares of Apple Inc. (NASDAQ:AAPL) and Prem Watsa‘s Fairfax Financial Holding owns over 46 million shares of BlackBerry Ltd (NASDAQ:BBRY).

Disclosure: None

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