Why do we hold BlackBerry to a higher standard when it comes to their Financial performance? Today was BlackBerry's earnings report and what were the takeaways?
- The first thing that stood out: BlackBerry will not be diluting shares. John Chen stated that there is no reason for this.
- Positive cash flow
- Revenue estimates were missed, but BlackBerry is not blowing their money on hookers.
- Ivy will be in early access as soon as October 2021 with launch set for February 2022
- BlackBerry has 23 of 25 design wins with EV manufacturers! Who's missing Tesla and DMC (This is not to be taken on a serious tone)?
- Launched
Now let's talk about Patent money, what happened here?
- To summarize, patent sell off is still being negotiated and this has halted any revenue from this for now.
and I quote Steve Rai
"Further to John’s comments regarding negotiations relating to a potential sale, licensing activities have been limited not only due to the ongoing negotiations, but also because revenue from additional transactions that could have been completed in the quarter would have been treated as contingent revenue and deferred to future periods. Therefore, had negotiations not been in progress, we believe licensing revenue would have been higher."
So again, why do we hold BlackBerry to higher standard that other companies in the same space? Is John Chen a perfect CEO? Not by any stretch but we have to believe in his vision and end game.
What do we see in the chart?
First we see a pennant formation. It is unclear if we will fall through the floor because of a perceived 'bad earnings call'. This market is definitely not 'following its rules' anymore. We live in the upside down.
Right now the 4/1 angle is our resistance and 8/1 serves as support. It is unclear if we will fall through. All pointers appear bullish but that's beyond the case because this market does not seem to be playing on fundamentals right now. We may or may not make a bounce at the 8/1 angle, only time will tell.
The pitchfork is showing us the general direction we have been heading since our first major move back in Oct 2020.
All the signals are there, yet they are being ignored.
- The first thing that stood out: BlackBerry will not be diluting shares. John Chen stated that there is no reason for this.
- Positive cash flow
- Revenue estimates were missed, but BlackBerry is not blowing their money on hookers.
- Ivy will be in early access as soon as October 2021 with launch set for February 2022
- BlackBerry has 23 of 25 design wins with EV manufacturers! Who's missing Tesla and DMC (This is not to be taken on a serious tone)?
- Launched
Now let's talk about Patent money, what happened here?
- To summarize, patent sell off is still being negotiated and this has halted any revenue from this for now.
and I quote Steve Rai
"Further to John’s comments regarding negotiations relating to a potential sale, licensing activities have been limited not only due to the ongoing negotiations, but also because revenue from additional transactions that could have been completed in the quarter would have been treated as contingent revenue and deferred to future periods. Therefore, had negotiations not been in progress, we believe licensing revenue would have been higher."
So again, why do we hold BlackBerry to higher standard that other companies in the same space? Is John Chen a perfect CEO? Not by any stretch but we have to believe in his vision and end game.
What do we see in the chart?
First we see a pennant formation. It is unclear if we will fall through the floor because of a perceived 'bad earnings call'. This market is definitely not 'following its rules' anymore. We live in the upside down.
Right now the 4/1 angle is our resistance and 8/1 serves as support. It is unclear if we will fall through. All pointers appear bullish but that's beyond the case because this market does not seem to be playing on fundamentals right now. We may or may not make a bounce at the 8/1 angle, only time will tell.
The pitchfork is showing us the general direction we have been heading since our first major move back in Oct 2020.
All the signals are there, yet they are being ignored.
