Tradebots issued a buy alert on Blackberry (BB;NYSE) Friday March 5th, 2021. Tradebots bought the fear and picked up Blackberry at $8.87.
S-Curve of Innovation
Once a market leader of smart phone became complacent and forgot about innovation and almost bankrupted themselves 10 years ago. This spelled the end of their first innovation S-Curve. We have been following the business transformation of Blackberry for awhile and monitoring their transformation from a hardware company to a security software/IOT solutions company. We believe they have learnt their lesson and will come back stronger with their strong strategic alliances with a lot of leading industry leaders essentially creating an economic moat. They are currently in their 2nd disruptive innovation S-Curve. From our analysis, we believe they’ve completed their turn around and they are current at the inflection point of their second disruptive innovation S-Curve in between innovation phase and growth phase. With recent cybersecurity incidents on SolarWinds and Microsoft, we expect IT budget on cybersecurity worldwide will increase many folds.
Recent innovation and growth opportunities
- BlackBerry Spark® Suites
- BlackBerry® Unified Endpoint Management (UEM)
- BlackBerry IVY
- BlackBerry QNX Hypervisor 2.2
- BlackBerry Radar
- BlackBerry Jarvis
- BlackBerry Cylance – A truly revolutionary antivirus, uniquely powered by AI and are currently on sale. Click on the Cylance logo below to get the discount if you are looking for a reliable antivirus software that does not slow down the performance of your device.
Attractive valuation
As explained above, sales are likely to pickup as Blackberry is just entering its growth phase. Growth will come back once again. The current valuation is very cheap compared to its peer as Wall Street is currently not pricing in it’s future growth potential. We believe it’s now the right time and right price to invest in Blackberry as a long term investment.
