The new Chief Executive Officer of BlackBerry Ltd has managed to disprove the skeptics expectations towards him and the company. According to the research firm Markit, the analysts negative forecasts have fallen to their lowest level in almost a year, thanks to the fact that the companys shares are at a four-month high. In addition, BlackBerry Ltd is currently making more money by selling off its real estate in Canada.
For the three months as a head of the company, the Chairman John Chen refills his executive ranks with responsibilities. Mr. Chen is resolved on making the company become more focused on business users, as well as on manufacturing more of the keyboard-based devices that were the first to attract customers towards BlackBerry Ltd. Although the profits generated by such sales are still relatively low, it seems that the CEOs strategy is doing a great job.
Chief Executive John Chen said in a statement cited by the Wall Street Journal: “BlackBerry remains committed to being headquartered in Waterloo and having a strong presence in Canada along with other global hubs. This initiative will further enhance BlackBerrys financial flexibility, and will provide additional resources to support our operations as our business continues to evolve.”
The founder of Yacktman Asset Management – Don Yacktman, said in an interview cited by Bloomberg: “Its like walking into a factory and the machinery is not humming, but you know theres a lot of value there if you can put it together and get it to work again. The stock was just dirt-cheap when you look at the assets.”
Adam Emery, who is one of BlackBerrys spokesmen, refused to make any comments and explained that it is the companys policy not to discuss stock movements.
One of the property brokers working for Avison Young Inc – Ted Davis forecast that the property may raise as much as to 501 million dollars, based on sales prices for previous companys buildings and the leaseback agreements on some buildings the BlackBerry owns.
Loyal customers have also helped the companys shares buoy. They are still 37% down compared with the ones a year ago, and analysts still mistrustful on the companys stock. According to some data compiled by Bloomberg, only 3 out of 43 analysts recommend buying BlackBerrys stock. Ittai Kidron, who is an analyst working for Oppenheimer & Co., shared in a note early in January: “Chens downsizing and enterprise-software-focused strategy in pragmatic, but were still cautious on his ability to successfully turn around the business.”
According to Bloomberg, the current share price of BlackBerry Ltd is 0.74% up, and its one-year return rate is 38.77% down.