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Research In Motion Ltd (BBRY)’s Assets Alone Make It Worth The Risk

It’s anyone’s guess

So, will the Z10 successfully turn Research In Motion Ltd (NASDAQ:BBRY) around? No one knows. While the consensus earnings estimates look decent (profit of 32 cents per share this year), I have never seen a wider range of estimates amongst a group of analysts, who are presumably looking at the same figures, products, etc. There are 36 major analysts currently following BlackBerry, and they estimate between a 60 cent loss and $1.58 profit for this year. In other words, they have no idea! The range is even wider for next year, and analysts predict anywhere from a $1.64 loss to a $1.70 profit.

With all of this uncertainty, you can be sure of one thing. There will certainly be a strong market reaction, one way or another, when 1Q 2014 earnings are release on June 28. So, should you get in ahead of the report? While it is a big risk to speculate on the success of the Z10, the value of BlackBerry’s assets creates a level of downside protection that is rarely seen. Maybe it is worth the risk…after all, if the Z10 beats estimates, even by a little bit, Research In Motion Ltd (NASDAQ:BBRY) could produce huge gains for those brave enough to buy.

Matthew Frankel owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

The article This Company’s Assets Alone Make It Worth The Risk originally appeared on

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