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blackberry stock breaks back into double digits

[WHAT's up with BBRY?]

] *BBRY stock breaks back into double digits*

] After the 2014-06-19 earnings report where BBRY reported a small operating "profit" of 23 M, BBRY stock has headed up fairly significantly in the short term cresting the 10.00 mark for the first time since 2014-03-07 and appears it could be headed even higher.
] Here are my *earnings call summary notes* - http://sospep.com/view/task?id=4108 with a few more details on the companies reported numbers.

] There are 3] things that would really raise concerns for me as an investor in this company, at this time.

] While the company reported that margins overall were up and also that margins on the _typically low margin devices_ business was up,

[WHY i don't get it]

* the total devices shipped has once again declined* for the (9th) consecutive quarter*
1. The _devices shipped units_ was reported as 2.4M.
2. On the surface, the 2.4M units per quarter, would fit right into Chens devices profitability number of 10M units annually, Unfortunaltely, when you look a little closer at the numbers, things don't look quite as promising, and ...
3. *Even more concerning than the still _declining device shipments_ number, is
*and the devices that they are shipping, are NOT the new models*

] While the company does not break the shipment numbers down into specific device-model families, it has previously reported the volume of old os (bb 7) devices versus new os (bb 10) devices. As far as I can see, this latest report did NOT mention that breakdown. This is particulary concerning if the devices shipped percentage breakdown of the previously reported quarters is still holding, which was approximately 70% old devices to 30% new devices.
] This makes it appear that Blackberry likely only shipped approximately 800K of the new* bb 10 device family in the quarter. I would think, that for anyone invested in BBRY, that number would scare the hell out of me. It would also put another bold yellow highlight mark on the abhorrently poor job that blackberry's marketing division is doing at selling their products.
] Another number that is NOT being talked about is the

*z10 inventory writedown charge, an elephant in the room*

] Of the guess-timated 800k bb10 devices sold, I would suggest that its likely that the z10 comprised a majority of the units sold. It is my understanding that the cost of these devices was previously written down to $0 on the books (FY 2014-Q2 sept 2013). This would mean that 100% of the revenue being realized currently from these units is reported as profit, this drives up overall device profits and device margins 'temporarily' BUT what happens when the _written off_ inventory is exhausted ???

[WHERE]

] Finally, please do not take this post as a bash on BBRY,
1. ] I have written previously about the blackberry 10 os and what I feel are the unique, better and compelling features of this mobile OS
2. ] http://sospep.com/view/article?id=796
] ... and as my current cellphone contract winds down,

] The Blackberry Z30 is still sitting at the top of my list to replace my current non blackberry smartphone.

] These are just my concerns about the COMPANY's STOCK valuation,

] And if I have got it all wrong, I am sure you will tell me how and why in the comments, Thanks

[WHEN]

] 2014-07-02

[EXAMPLE]

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[HOW-TO]

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[REFERENCE]

[DISCLAIMER] dont buy/sell any stock based upon this information.

It's just an opinion from an observer who has no expertise in the financial markets

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ID: 3640

NAME: blackberry-stock-value-questions

DESCRIPTION: By Don Sagrott, founder @sospep.com - After reading through some of the recent company financial reports, It seems that I have more concerns about BBRY valuation than those who are driving up the price of the stock back into double digit territory

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EDITOR: article.editor/s

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STATUS: Write

PRIORITY: 0

OWNER ID: 75

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