A week ago versions of this story were featured prominently across the business media. The gist of the tale is that BlackBerry is by now such a lame duck that Canada's largest cellphone provider will no longer trouble itself with selling a product that is in a death spiral, etc.
Who is benefitting from the tsunami of negative stories about BlackBerry? Why, the folks who have already announced their intention to take the company private. That would be Prem Watsa and company.
Today we are informed, in tiny stories buried deep in the business section or entirely left out of the very news platforms that splashed last weeks bad news all over their home pages, that oopsie, Rogers will be selling the latest BlackBerry after all! All those negative headlines were just a misunderstanding, don't you know!
Perhaps, but it would certainly be a misunderstanding that would serve Mr. Watsa's interests in keeping the share price down, wouldn't it?
Hard to know where such misunderrstandings might originate. After all, the Chair of Rogers and CEO of Rogers Telecommunications, Al Horn, sits on the board of directors of Watsa's Fairfax Financial.
It's a small world, ain't it?
Showing posts with label Fairfax Blackberry. Show all posts
Showing posts with label Fairfax Blackberry. Show all posts
Thursday, October 10, 2013
Saturday, September 28, 2013
Deluge of horrible headlines will let Watsa get Blackberry for cheap
You have to wonder what's behind the rash of headlines like this one.
Headlines to the effect that T-mobile, the smallest of the big-four mobile providers in the US by a wide margin, would no longer sell the Blackberry, were all over the media this past week.
When you dig into the story a bit you find out that contrary to what the headline says, T-mobile will continue to sell, display, and provide service for the Blackberry.
Combine that headline with the near-billion dollar "loss" announced this week and leaked last week, and therefore reported continuously for two weeks worth of business news cycle, and it's not hard to see why there's been a lot of downward pressure on the share price.
So the T-mobile story is essentially a misrepresentation, the billion dollar loss is actually a "writedown", and the Fairfax offer to buy the company at nine bucks suddenly looks generous.
At least if you take those headlines at face value.
Here's a story from Forbes a few days ago that puts a value of over $20 on the stock.
While that may be a little optimistic, Prem Watsa's dream of buying the company at $9 is a little too opportunistic.
Headlines to the effect that T-mobile, the smallest of the big-four mobile providers in the US by a wide margin, would no longer sell the Blackberry, were all over the media this past week.
When you dig into the story a bit you find out that contrary to what the headline says, T-mobile will continue to sell, display, and provide service for the Blackberry.
Combine that headline with the near-billion dollar "loss" announced this week and leaked last week, and therefore reported continuously for two weeks worth of business news cycle, and it's not hard to see why there's been a lot of downward pressure on the share price.
So the T-mobile story is essentially a misrepresentation, the billion dollar loss is actually a "writedown", and the Fairfax offer to buy the company at nine bucks suddenly looks generous.
At least if you take those headlines at face value.
Here's a story from Forbes a few days ago that puts a value of over $20 on the stock.
While that may be a little optimistic, Prem Watsa's dream of buying the company at $9 is a little too opportunistic.
Monday, September 23, 2013
Prem Watsa's Blackberry bluff
According to media reports, Prem bought big into Blackberry way back when the shares were going up up up. Some reports peg his average purchase for his 10% BBY stake in the $30 a share range.
If that's the case, Prem is down a good billion or so on his Blackberry file.
Just as we predicted here yesterday, Mr. Watsa has moved on Blackberry, at the shamefully opportunistic price of nine bucks a share.
I guess it's not that shameful if you've got a 10% stake that you paid more for than what you're buying the other 90% for today.
But there is no reason to let Prem walk away with the company at nine bucks.
If that's the case, Prem is down a good billion or so on his Blackberry file.
Just as we predicted here yesterday, Mr. Watsa has moved on Blackberry, at the shamefully opportunistic price of nine bucks a share.
I guess it's not that shameful if you've got a 10% stake that you paid more for than what you're buying the other 90% for today.
But there is no reason to let Prem walk away with the company at nine bucks.
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