Research In Motion Ltd (NASDAQ:BBRY) is at that point where investors and analysts step back after the past several weeks to try to determine the future path of a company and its stock. BlackBerry has had a nice little run of positive momentum since it cam out with its new BlackBerry 10 operating system and top-line handsets. However, in some cases the reviews have been mixed and the sales numbers have been somewhat hard to pinpoint. So where is Research In Motion BlackBerry going and should we be buying or selling?
CNBC’s “Street Fight” segment featured Guy Adami and Dan Nathan (see on the next page) making the respective Bull and Bear cases for this company and left it to the viewers to give their votes as to where they think the stock is headed.
Adami started by giving his bullish take on Research In Motion Ltd (NASDAQ:BBRY) when he said, “First off, the demise of the Z10 (handset) with the large amount of returns, that proved to be false. And the number of apps on BlackBerry 10 has grown about 40 percent in the last couple of months, and over 70 percent of those apps are specific to BlackBerry.
And if you look at their last (earnings) report, their gross margins were spectacular, which means they’re running the business better. And, there is a sizable (37 percent short interest) here, so that’s why I like BlackBerry.”
Research In Motion Ltd (NASDAQ:BBRY), however, was not seen as all that impressive to Dan Nathan, who took a bearish position. “BlackBerry is a very trendy short right now, but here’s the thing: Those margins that got better in that last quarter, that was the sell-in of the new devices that they just put out to all these carriers. That’s probably as good as it gets from where I’m sitting.
Image: Research In Motion Ltd (NASDAQ:BBRY)
We look at the Z10 – this is the Galaxy, the iPhone killer; you know, we don’t know whether returns are really hot or not. I suspect that when they report their Q1 (earnings) in late June, we’ll see that this thing is not selling. Not only that, we have the Q10 with the QWERTY keyboard, that is supposed to be showing some demand. I don’t see it, I see people are looking at the iPhone and looking at Android. I don’t think this company is going to make it as a sole independent company.”
So there you have the two sides of Research In Motion Ltd (NASDAQ:BBRY). Who do you think is right? Rather than tweeting your answer to CNBC, you can give us your take in the comments section below. Are you a bull or a bear when it comes to BlackBerry? Let us know – we’d love to get your feedback.
See the video on the next page: