Research In Motion Ltd (BBRY)’s Decline in 7 Charts

Good financials

Blackberry once again swung into the red with the company reporting a $0.16 per share loss.

But once you dig beneath the headline, the company’s financials are surprisingly good.

First, the fact that the company is still relatively near profitability shows how successful management was at cutting costs. Through its CORE program, the company slashed over $1 billion in operating expenses.

Second, the company generated $630 million in cash flow from operations increasing its cash balance to $3.1 billion. Given that the stock now has only a $5.5 billion market capitalization, the cash should put a floor underneath that stock price assuming you give it no value for the company’s patents, its remaining service business, or any possible success of BB10.

But those are only two raisins in a giant loaf of bread.

What does the future hold?

Short sellers are considered to be smarter investors because of the sophistication of their investing techniques.

So what does the smart money think? They’re pretty pessimistic. Investors have sold 35% of the BlackBerry’s outstanding shares short.

Flies usually hover over rotten eggs.

Foolish bottom line

This quarter eliminates a big part of the bull thesis – that Research In Motion Ltd (NASDAQ:BBRY) can survive as a standalone hardware company. To conserve investor capital, it may be time to liquidate the firm.

The article BlackBerry’s Decline in 7 Charts originally appeared on Fool.com and is written by Robert Baillieul.

Robert Baillieul has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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