Technical analysis of BlackBerry Ltd BB

Accuracy score :
97%

BlackBerry, formerly Research in Motion, designs and markets wireless handsets, software, and services. Its primary revenue drivers are the sale of handsets to customers for personal and corporate use, a variety of software products used in embedded systems and for mobile device management, and service access fees from wireless carriers associated with securing and processing wireless data traffic. BlackBerry also owns QNX, a leader in software used in automotive infotainment systems.

 

Summary (from the latest annual and quarterly report )

  • Total equity: 2.4 billion USD
  • Market Cap is 4.64 billion USD (the last price of the stock is 8.61 USD)
  • BlackBerry Ltd is a designer, manufacturer and marketer of wireless solutions for the mobile communications market
  • Equity of total company has decreased from 3.2 billion USD in 2016 to 2.4 billion in 2018
  • The company has 580 million USD in cash on the account (from latest quarterly report  2018)
  • Total equity – cash on account = 2.4 billion USD – 580 million USD = 1.82 billion USD
  • In 2018 the company has 739 million USD long-term debt, short-term debt is zero                                                                              (In 2016 total debt was 1.27 billion USD)
  • Company's revenue has decreased in 2018 to 932 million USD from 1.3 billion in 2017
  • Net income in 2018 was 405 million USD, Net loss in 2017 was 1.2 billion USD

 

Technical analysis

BlackBerry has seen its stock price go down by more than 27% since the end of September 2018. The company's turnaround continues to take much longer than expected and this is one of the main reasons why the stock of this company continues to fall. BlackBerry needs a revenue infusion and according to analysts, acquisition of cybersecurity firm Cylance could be a very important driver. BlackBerry is in talks to acquire Cylance for up to 1.5 billion USD and a deal like this would seem to be a step in the right direction. On the other side, BlackBerry QNX is also very important for the growth of this company. As the industry evolves from connected, to automated, and ultimately to autonomous driving, the electronic architecture of the car will fundamentally change from having more than 100 disparate electronic control units (ECUs) distributed throughout the car, to a dozen or so domain controllers. BlackBerry QNX has developed a flexible foundational technology platform to support this transition, anchored by its safety-certified and secure operating system (OS) and hypervisor. BlackBerry announced in June 2018 that its QNX software is now embedded in 120 million cars that are on the road today. Three years ago, BlackBerry QNX technology was inside 60 million cars.

 

Technically looking, everything indicates that the price could fall very soon to 8 USD which is a very strong support level. On this chart (the period from the 2014 year), I marked resistance and support levels. Supports levels are 8 USD and 7 USD, 9 and 10 USD represent the current resistance levels. If the price jumps above 10 USD it would be a "BUY" signal and we have the open way to 11 and then to 12 USD. Rising above 12 USD supports the continuation of the bullish trend overview efficiently for the upcoming period. On the other side, if the price breaks 8 USD it would be a very strong "SELL" signal and we have the open way to 7 USD.