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BlackBerry Ltd (BBRY)’s Passport IS A Premium Phone, Metaphorically Speaking

BlackBerry Ltd (NASDAQ:BBRY) has launched its Passport and there’re mixed feelings related to this. Many point to the fact that it’s not going to save the company and the product embeds bizarre features. Despite its square shapes, the phone comes in very handy when one needs to write an e-mail or schedule the next day. According to Bloomberg Contributing Editor Paul Kedrosky, this won’t bring BlackBerry Ltd (NASDAQ:BBRY) back to its initial glory, but it may boost its stock price.

BlackBerry Ltd (NASDAQ:BBRY)

The company’s value per share rose some 4.7%, to $10.26, in the last trading day. Even if the company cannot get to its previous highs, some 4 or 5 years ago, its stock price gained 37.9% more weight year-to-date and it at least gives the impression that some value might be created by  BlackBerry Ltd (NASDAQ:BBRY), as Bloomberg’s Contributing Editor implied.

“No. It’s going to take a lot more than that. As you can highlight it of the top, the unit numbers are not a fairly start. But, if you look at year to year decline in quarterly revenues, something like 40%. In the quarter they did something like two and a half million Blackberry hardware units total, which is roughly a quarter of what Apple did in a two day weekend,” said Paul Kedrosky.

He also noted that the Passport will not fare well in the market, mostly because the majority of the customers will not be impressed. However, BlackBerry Ltd (NASDAQ:BBRY)’s CEO, John S. Chen, has done a great job so far. He has been able to cut costs and give the company a bit of momentum to boost its price above the company’s Intellectual Property’s value. This might be the last possibility to reap a fairly nice premium for BlackBerry Ltd (NASDAQ:BBRY) in the event of an acquisition.

“[…] so the trick in this game is if you give the impression that you’re able to maybe turn it around, that’s often enough that you can get a significant premium at that point,” added Paul Kedrosky.

The company still has the possibility for an overturn of events, but Passport’s release just means that its management has put faith to move mountains as they win some money and time.

Disclosure: none

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