Investing in companies which have a proven path to profitability and a business model which is improving substantially over time has turned out to be very profitable for investors in companies such as Shopify Inc. (TSX:SHOP)(NYSE:SHOP) or Facebook Inc. (NASDAQ:FB). For investors who want to put BlackBerry Ltd. (TSX:BB)(NYSE:BB) in the same (or even a similar) bucket, laughter is often the first reaction for many.
When an investor takes a step back and looks at the fundamentals of BlackBerry’s new business model, however, one may notice that the company appears to be trading at levels (which in the tech industry) would be considered “value,” while offering an upside just as bright as many of the same firms which have found a way to bedazzle investors into paying triple-digit P/E premiums in recent years.
My belief is that BlackBerry’s turnaround story has only just begun, and with the leadership of a completely re-hauled management team and a star CEO who has signed on for a long-term extension, investors in it for the long-haul could potentially do quite nicely by acquiring some shares of BlackBerry at current levels and letting them ride. While BlackBerry still represents a speculative play on many levels, the company has proven it can be profitable at much lower revenue levels, and with growth appearing to be right around the corner for the software maker, I would recommend considering BlackBerry on any dips moving forward.
Invest wisely, my friends.
