BlackBerry (BBRY) Stock Climbing Today as CEO Expects $100 Million from MessengerBy twocents@thestreet (Kurumi Fukushima) NEW YORK (TheStreet) -- Shares of BlackBerry are climbing, higher by 0.24% to $10.65 in late afternoon trading on Wednesday, after CEO John Chen said he believes the company can make approximately $100 million from its BBM messaging service in the fiscalBy twocents@thestreet (Kurumi Fukushima) NEW YORK (TheStreet) -- Shares of BlackBerry are climbing, higher by 0.24% to $10.65 in late afternoon trading on Wednesday, after CEO John Chen said he believes the company can make approximately $100 million from its BBM messaging service in the fiscal year beginning in March, CNBC reports from the International Consumer Electronics Show. The company announced at CES in Las Vegas that it would launch a BBM messaging app for Android wearable devices, including smart watches. Blackberry hopes to increase its monthly active BBM users and make the service more sticky, according to CNBC. Exclusive Report: Jim Cramers Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Chen added that demand is very good for the Blackberry Classic, a phone model that focuses on the companys functionality and highlights its physical QWERTY keyboard. Canada-based BlackBerry is a provider of wireless solution, comprised of smartphones, service and software. Separately, TheStreet Ratings team rates BLACKBERRY LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: We rate BLACKBERRY LTD (BBRY) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the companys primary weakness has been its declining revenues. Highlights from the analysis by TheStreet Ratings Team goes as follows: The companys current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, BLACKBERRY LTDs return on equity significantly trails that of both the industry average and the S&P 500. The revenue fell significantly faster than the industry average of 13.5%. Since the same quarter one year prior, revenues fell by 33.5%. The declining revenue has not hurt the companys bottom line, with increasing earnings per share. Despite currently having a low debt-to-equity ratio of 0.50, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that BBRYs debt-to-equity ratio is mixed in its results, the companys quick ratio of 2.49 is high and demonstrates strong liquidity. BLACKBERRY LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BLACKBERRY LTD reported poor results of -$11.17 versus -$1.20 in the prior year. This year, the market expects an improvement in earnings (-$0.14 versus -$11.17). The gross profit margin for BLACKBERRY LTD is rather high; currently it is at 63.81%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -18.66% is in-line with the industry average. You can view the full analysis from the report here: BBRY Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Click to view a price quote on BBRY. Click to research the Telecommunications industry. ift.tt/1gB4pon
Posted on: Wed, 07 Jan 2015 21:19:17 +0000