{"id":48254,"date":"2014-03-08T11:06:02","date_gmt":"2014-03-08T16:06:02","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=48254"},"modified":"2014-03-08T11:06:02","modified_gmt":"2014-03-08T16:06:02","slug":"this-lazarus-stock-just-rose-from-the-dead","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/03\/08\/this-lazarus-stock-just-rose-from-the-dead\/","title":{"rendered":"This Lazarus Stock Just Rose From the Dead"},"content":{"rendered":"<p>By <a href=\"http:\/\/ift.tt\/1dy17jo\"><u>WallStreetDaily.com<\/u><\/a> <img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"http:\/\/ift.tt\/1dCsbwI\" class=\"attachment-thumbnail wp-post-image\" alt=\"This Lazarus Stock Just Rose From the Dead\" style=\"margin-bottom: 5px\" \/><\/p>\n<p>You\u2019ve probably heard it said that everybody loves a good underdog story.<\/p>\n<p>Apply that thinking to the stock market, and there\u2019s no greater underdog at the moment than <b>BlackBerry<\/b> (<a target=\"_blank\" href=\"http:\/\/ift.tt\/17AmR6Z\">BBRY<\/a>).<\/p>\n<p>You know the tale of woe here. Having been at the top of its game and the undoubted mobile leader in the corporate world, the company kicked back and admired its handiwork. Meantime, <b>Apple<\/b> (<a target=\"_blank\" href=\"http:\/\/ift.tt\/Lglp38\">AAPL<\/a>) and <b>Google<\/b> (<a target=\"_blank\" href=\"http:\/\/ift.tt\/IhjQKm\">GOOG<\/a>) raced past and left it choking on fumes.<\/p>\n<p>In short, when it came to \u201cinnovate or die,\u201d BlackBerry died.<\/p>\n<p>Many analysts think BlackBerry has zero chance of surviving. But like Lazarus rising from the dead, shares are up 70% since early December, and it\u2019s one of the best-performing stocks of 2014.<\/p>\n<p>So are these guys right? Is BlackBerry dying the world\u2019s slowest, most painful death like everyone believes? Or is this another case of a heavy underdog springing a surprise?<\/p>\n<p>Let\u2019s have a look\u2026<\/p>\n<p><b>The Market\u2019s Ugliest Fundamentals<\/b><\/p>\n<p>There\u2019s no doubt that BlackBerry\u2019s fundamentals are some of the most frightening around. Its last earnings report showed\u2026<\/p>\n<ul>\n<li>A steep decline in year-over-year earnings per share &#8211; from $2.24 to a loss of $1.20.<\/li>\n<\/ul>\n<ul>\n<li>A net income plunge of 149% &#8211; from $9 million to a loss of $4.4 million, versus the same quarter one year ago.<\/li>\n<\/ul>\n<ul>\n<li>Net cash flow dropped by 108% to minus $81 million, compared to a year earlier.<\/li>\n<\/ul>\n<ul>\n<li>And shares have significantly underperformed the S&amp;P 500 and communications equipment industry.<\/li>\n<\/ul>\n<p>This is what happens when you live on past glories and fail to innovate.<\/p>\n<p>But is it too late for a turnaround?<\/p>\n<p>Well, let\u2019s start at the top\u2026<\/p>\n<p><b>Chen Flips the Script<\/b><\/p>\n<p>An upgrade in the CEO\u2019s office can make a massive difference when it comes to transforming a company\u2019s fortunes.<\/p>\n<p>Just as Apple did when it rehired Steve Jobs, BlackBerry is taking steps towards rebuilding itself by recently appointing John Chen as Chief Executive Officer.<\/p>\n<p>Chen has made it his mission to redefine Blackberry\u2019s purpose within the industry it once dominated. He realizes that in order for the company to achieve any level of success again, it just needs to <span style=\"text-decoration: underline\">STOP<\/span>.<\/p>\n<p>As in, stop running in a race that the company lost years ago.<\/p>\n<p>And that means flipping the business model.<\/p>\n<p>BlackBerry used to be a hardware company that created software on the side. Today, Chen is investing heavily in BlackBerry\u2019s software business, with hardware as an afterthought.<\/p>\n<p>He wants to reclaim the enterprise market that BlackBerry once dominated not too long ago. Only in a different way.<\/p>\n<p><b>BlackBerry\u2019s Four Pillars<\/b><\/p>\n<p>Blackberry\u2019s fortunes boil down to four pillars of revenue, so that it can first stabilize the business, and then sustain itself as a legitimate company\u2026<\/p>\n<p><b>Pillar #1: Automotive Infotainment<\/b><\/p>\n<p>In 2010, while operating under its Research In Motion name, BlackBerry paid $200 million for a company named QNX.<\/p>\n<p>Fast forward to today, and QNX is one of the most widely used software systems in the auto industry.<\/p>\n<p>QNX is a lot like <a target=\"_blank\" href=\"http:\/\/ift.tt\/1dCsbwK\">SoftKinetic, a company I met with at CES 2014<\/a>.<\/p>\n<p>Technically speaking, QNX provides technology that\u2019s known as a \u201cmicrokernel system.\u201d<\/p>\n<p>Simply put, a microkernel system is about as minimal as a computer operating system can get. So minimal, in fact, that in its purest form, it provides no operating system services at all! It only provides the tools needed to implement services like low-level address space management, thread management, and inter-process communication (IPC).<\/p>\n<p>So QNX is essentially a software company that manufactures operating systems, development tools and professional services for embedded, connected systems.<\/p>\n<p>Connected systems like Apple\u2019s CarPlay, for example\u2026<\/p>\n<p><b>An Unlikely Partnership<\/b><\/p>\n<p>CarPlay is Apple\u2019s first ever automotive technology.<\/p>\n<p>It basically acts as an extension of your iPhone, converting it into a hands-free infotainment system when you\u2019re driving your car.<\/p>\n<p>Apple has already embedded CarPlay into various makes and models, such as Volvo, Mercedes-Benz, Jaguar, and Ferrari.<\/p>\n<p>And it wouldn\u2019t be possible without BlackBerry\u2019s QNX business as a tool to build the iOS connected car software.<\/p>\n<p>QNX provides the \u201chooks\u201d so that CarPlay can access the car\u2019s native interface (i.e., the steering wheel buttons, display screen, etc.)<\/p>\n<p>Of course, once the tech media caught wind of this, some analysts immediately jumped to the following conclusion: <i>Since QNX will power CarPlay, QNX will be in every vehicle that offers CarPlay.<\/i><\/p>\n<p>To those &#8220;gurus&#8221; who then blindly recommended BlackBerry shares based on this shoddy analysis, swing and a miss, fellas&#8230;<\/p>\n<p><b>Analysts Have This One Wrong\u2026 Here\u2019s the Truth<\/b><\/p>\n<p>Not to diminish QNX\u2019s market potential, but it\u2019s important to understand that the above assumption suggests that there\u2019s an exclusivity agreement between Apple and BlackBerry.<\/p>\n<p>This isn\u2019t true (well, not yet, anyway).<\/p>\n<p>The reality is, QNX doesn\u2019t just center on Apple.<\/p>\n<p>The QNX software is licensed by auto manufacturers, and Apple can build its iOS infotainment \u201capp\u201d on other underlying operating systems, too. Just like <b>Microsoft<\/b> (<a target=\"_blank\" href=\"http:\/\/ift.tt\/ABHBVg\">MSFT<\/a>) Office runs on Mac operating systems and how the <b>Twitter<\/b> (<a target=\"_blank\" href=\"http:\/\/ift.tt\/1f48JIj\">TWTR<\/a>) app can run on just about any OS.<\/p>\n<p>In other words, not every partnership that Apple establishes with car manufacturers to use CarPlay uses QXN. A good amount of them use Linux.<\/p>\n<p>So the whole idea that CarPlay <i>must run<\/i> on QNX &#8211; and therefore, QNX will ride the coattails of Apple\u2019s latest launch &#8211; is off the mark.<\/p>\n<p>However, as the table below shows, BlackBerry has notched a huge score, with <b>Ford<\/b> (<a target=\"_blank\" href=\"http:\/\/ift.tt\/1ffL7hd\">F<\/a>) dropping Microsoft in favor of QNX. Here\u2019s the full breakdown\u2026<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" alt=\"\" src=\"http:\/\/ift.tt\/1dCscR9\" width=\"500\" height=\"820\" \/><\/p>\n<p>While it\u2019s true that BlackBerry&#8217;s QNX will play a big role in the company\u2019s prospects, it\u2019s not the full story, or the Holy Grail for BlackBerry that some would like you to believe. Rather, it will just be one critical pillar out of four.<\/p>\n<p>Coming up: I\u2019ll outline the remaining three &#8211; and give you the best way to play BlackBerry\u2026 which may be the best speculative \u201cBuy\u201d on the market today.<\/p>\n<p>Your eyes in the Pipeline,<\/p>\n<p>Marty Biancuzzo<\/p>\n<p>The post <a href=\"http:\/\/ift.tt\/1dCsbwM\">This Lazarus Stock Just Rose From the Dead<\/a> appeared first on <a href=\"http:\/\/ift.tt\/wCCKdg\">Wall Street Daily<\/a>.<\/p>\n<p>Article By <a href=\"http:\/\/ift.tt\/1dy17jo\"><u>WallStreetDaily.com<\/u><\/a><\/p>\n<p>Original Article: <a href=\"http:\/\/ift.tt\/1dCsbwM\">This Lazarus Stock Just Rose From the Dead<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com You\u2019ve probably heard it said that everybody loves a good underdog story. Apply that thinking to the stock market, and there\u2019s no greater underdog at the moment than BlackBerry (BBRY). You know the tale of woe here. Having been at the top of its game and the undoubted mobile leader in the corporate &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2014\/03\/08\/this-lazarus-stock-just-rose-from-the-dead\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;This Lazarus Stock Just Rose From the Dead&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-48254","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/48254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=48254"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/48254\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=48254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=48254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=48254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}