Canadian tech company BlackBery Ltd. (TSX:BB)(NYSE:BBRY) has certainly been doing a lot of things right of late – so much so, that CEO John Chen has reiterated his belief the Canadian software company will be able to break even for 2017, for the first time in a long time.
The shift to becoming a software-focused company has taken a significant amount of up-front capital and reorganization, two terms most investors want to steer clear of. In the absence of profitability, a turn around such as the one proposed by Mr. Chen has been hard for the market to digest, both in terms of probability of success as well as the potency of the potential long-term cash flows expected to be generated from these efforts.
As we can see from the company’s recent bottom-line numbers, BlackBerry is certainly doing everything the market has expected and more, so much so that investors have bid up the share price of BlackBerry more than 20% over the past two weeks following its earnings beat. The Street appears to be gaining confidence in the ability of BlackBerry to continue its turnaround, giving credence to the idea that the secure software space is the place for BlackBerry to be moving forward as the need for increased security and innovation within operating systems will drive the desirability of BlackBerry’s product offering for the foreseeable future.
Invest wisely, my friends.
