Things are beginning to go Blackberry’s way

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With a stock price of $8.64 Blackberry Ltd (BBRY) is well off 2007 highs which were in excess of $200.  But things are beginning to go Blackberry’s way as it attempts to transform itself into a software company.  Blackberry has partnered Ford in developing autonomous cars and BlackBerry QNX was approved by the Ministry of Transportation of Ontario in November to test autonomous vehicles on Ontario roads. Last month Blackberry reported better than expected adjusted earnings for the sixth straight quarter and said that it expects to be profitable on an adjusted basis for the second year in a row. Finally, last Wednesday BlackBerry reported that it had won an $815 million award in arbitration with Qualcomm.  With BlackBerry aiming to grow its software businesses, the award is just what Blackberry needed to bolster its balance sheet and increase the likelihood of acquisitions to enhance growth.  The stock is currently only up $0.95 on Tuesdays close ($7.70) even though the award is equivalent to cash of $1.35 per share and the ruling is binding and cannot be appealed. 

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Disclosure: The author holds no positions in any of the stocks mentioned nor has any intentions to initiate any in the next 72 hours.

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