The saga regarding BlackBerry (BBRY) is still in its early stages after the hiring of John Chen as CEO.  Today marks an important step as the company wrote down a great deal of inventory and intangible assets and the company is beginning to look forward.  Finally, the decision was made to outsource hardware manufacturing, which makes all the sense in the world considering the company lacks the scale to both design and manufacture hardware and software.  Moving forward, the company will be focusing on the Enterprise with security and software solutions.  BlackBerry has some very valuable assets but it will take a long time to monetize those assets and build the business back up.  If Chen can adequately stem the cash burn, I’m optimistic on the stock’s future, but there is certainly a lot of uncertainty.  Price paid is the biggest determinant of investment success and BlackBerry is exceptionally cheap on a net asset value basis.

 

 

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