BlackBerry might have loads of success in the automotive sector, this investor says

BlackBerry's (BlackBerry stock Quote, Chart TSX:BB) share expense continues to slip as traders worry that the (enormously) lofty heights reached with the aid of the inventory over a year in the past are actually nothing but a fond reminiscence.

but the downturn is an excellent reality assess, says Teal Linde of Linde fairness Fund, considering that even with the enterprise's turnaround well below way, the inventory had gotten forward of itself.

"[BlackBerry] is starting with a valuation that's quite excessive," talked about Linde, in dialog with BNN Bloomberg Tuesday. "The challenge from an investor's point of view is that they're succeeding in getting all of these contracts and that they're having fun with loads of wins in the car and linked vehicle sector. They picked the right sector to move in because it's a tremendous business, but the connected vehicle continues to be very early-stage, and so the volume of company that they're getting from these wins remains type of small."

"I simply think that the revenues and the company has some catching as much as do in terms of the valuation for the stock which remains fairly excessive," he says.

as soon as valued at over $a hundred and forty.00 on the height of its handset enterprise within the late 2000s, BlackBerry's share expense stayed within the $10 to $12 range for a couple of years before mountaineering over plenty of 2017, reaching a high of $18 by using early January 2018. but it's been commonly downhill from there, with the inventory threatening to sink under $eleven over the final few days of buying and selling.

a whole lot has been made about the enterprise's transition from handset maker to software and safety enterprise, the place BlackBerry's QNX platform, got in 2010, is being deployed in the related and driverless automobile sectors.

but Linde is cautious on the inventory, saying BlackBerry still has an awful lot to show both with its car applications and with Cylance, the cybersecurity enterprise bought earlier this year for US$1.four-billion.

"I wouldn't be plunging in, but if these wins that they're getting beginning to grow into higher and larger businesses —because the measurement of the car market and the connected motor vehicle of the long run— the enterprise does have a lot of upside if they be successful at that," Linde says.

"after which the Cylance acquisition, we'll must see whether or now not that performs out," he says. "Acquisitions in the tech sector are notoriously full of examples that fail, so that you have to be cautious about that."

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