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Prem Watsa Comments on BlackBerry
Posted by: Holly LaFon (IP Logged)
Date: March 11, 2013 04:17PM

Markets fluctuate – and very often in extreme directions. Remember the tech boom, when companies with no sales were valued at tens of billions of dollars? In 2000, Northern Telecom accounted for 36.5% of the Toronto Stock Exchange index and was worth almost Cdn$400 billion; by 2009, it was bankrupt! Well, last year the opposite happened to Research in Motion (now known as BlackBerry). At its low of approximately $6 1⁄2 per share, it sold at 1⁄ 3 of book value per share and a little above cash per share (it has no debt). The stock price had declined 95% from its high! The company produces the BlackBerry which for years was synonymous with the smart phone. The BlackBerry brand name is perhaps one of the more recognizable brand names in the world and the company has 79 million subscribers worldwide. Revenues went from essentially zero to $20 billion in about 15 years – and then it hit an air pocket! The company got complacent, perhaps overconfident, and did not respond quickly enough to Apple and Android. Mike Lazaridis, the founder and a technological genius – and a good friend – asked me to join the Board, which I did after meeting Thorsten Heins, whom Mike recommended as the next CEO of the firm. Thorsten's 27 years of experience in all types of leadership jobs in small and large divisions at Siemens, combined with his five years at BlackBerry, were exactly what was needed. Thorsten hired a very capable management team and then focused on producing a high quality BB10 – the next generation of BlackBerries. The brand name, a security system second to none, a distribution network across 650 telecom carriers worldwide, a 79 million subscriber base, enterprise customers accounting for 90% of the Fortune 500, almost exclusive usage by governments in Canada, the U.S. and the U.K., a huge original patent portfolio, an outstanding new operating system developed by QNX and $2.9 billion in cash with no debt, are all formidable strengths as BlackBerry makes its comeback! The stock price recently moved as high as $18 per share, a far cry from the $140 per share it sold at a few years ago. And please note, 1.8 billion cell phones are sold worldwide annually, and of the 6 billion cell phones in the world, only 1 billion are smart phones. Lots of opportunity for Canada's greatest technology company! What is striking, even for a person like me who has seen many bull and bear markets, is that at $6 1⁄2 per share, all the Wall Street and Bay Street analysts were uniformly negative – just as they were uniformly positive only a few years ago at prices north of $100 per share. John Templeton's advice to us: "Buy at the point of maximum pessimism", still rings in our ears!! We own approximately 10% of the company at an average cost of $17 per share and we are excited about its prospects under Thorsten's leadership and Mike's technical genius.

From Prem Watsa's 2012 annual letter.



Guru Discussed: Prem Watsa: Current Portfolio, Stock Picks
Stocks Discussed: BBRY, RIMM,
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Re Prem Watsa Comments on BlackBerry
Posted by: kfh227 (IP Logged)
Date: March 20, 2013 10:23PM

BBRY is the best investment out there. Was better to get in under $10, but this is stil la $40 stock easily. If hte Z10 takes off, this is worth way more than that.

FWIW: I have my Z10 pre-ordered at Verizon



Guru Discussed: Prem Watsa: Current Portfolio, Stock Picks
Stocks Discussed: BBRY, RIMM,
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Re Prem Watsa Comments on BlackBerry
Posted by: byslkwd (IP Logged)
Date: April 11, 2013 01:34PM

Ask and look. seems like there are plenty of BBRY users out there that refuse to switch.



Guru Discussed: Prem Watsa: Current Portfolio, Stock Picks
Stocks Discussed: BBRY, RIMM,
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Re Prem Watsa Comments on BlackBerry
Posted by: onlyvalue (IP Logged)
Date: May 13, 2013 07:55PM

J'utilise le modèle à clavier, le Q10. Je suis enchanté ! Je suis in à 12$ et j'envisage d'augmenter ma position de façon substentiel...

Black is back



Guru Discussed: Prem Watsa: Current Portfolio, Stock Picks
Stocks Discussed: BBRY, RIMM,
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Re Prem Watsa Comments on BlackBerry
Posted by: AshishGupta (IP Logged)
Date: September 21, 2013 12:08PM

Now that BBRY new cell phone as failed, and they are getting out of devices market, what do we see as BBRY future - enterprise network?

Why cannot Apple replicate it easily? and even bigger question is it even needed anymore?

I see people using Andriod and Iphone with security apps installed at work where at onetime only bbry was allowed because of security.

I am thinking is BBRY even worth the gamble?



Guru Discussed: Prem Watsa: Current Portfolio, Stock Picks
Stocks Discussed: BBRY, RIMM,
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