BlackBerry (TSX:BB) stock: Too low-priced to disregard

Canadian traders probably be aware BlackBerry (TSX:BB)(NYSE:BB) fondly. a little over a decade in the past, its place as a smartphone leader seemed unshakable. BlackBerry inventory, meanwhile, became a millionaire maker for many. Now, it's struggling to show a income and has misplaced just about 97% of its value on the grounds that the iPhone chang ed into released. 

youngsters, BlackBerry inventory could now be too low-cost to ignore. here are three reasons I agree with value traders deserve to take a better examine this former all-superstar. 

Patents

Two decades because the chief in international smartphone technology comes with certain perks. The business has accumulated over 44,000 patents. ultimate year, it changed into granted more U.S. tech patents than every other Canadian tech enterprise. BlackBerry stock doesn't absolutely replicate the price of the underlying patent portfolio. 

intellectual property may also be used to generate revenue in a couple of techniques. It can be licensed to third events or used to assemble royalties from companions who borrow the know-how. It might also be utilized in litigation towards corporations who infringe the patents. 

although, I believe the basket of patents makes the enterprise a pretty acquisition goal for either inner most equity or technology opponents. This boosts the underlying cost of BlackBerry stock. 

New ventures

BlackBerry's acquisition of cybersecurity enterprise Cylance ultimate 12 months additional enhances its cost. Endpoint protection is a multi-billion-greenback industry it is straight away gaining steam internationally. BlackBerry is neatly located to dominate this market and extract billions in incremental market value. 

in the meantime, the enterprise's synthetic intelligence and QNX structures put it at the epicentre of the self reliant using revolution. Legacy auto giants may count on BlackBerry to create their self sustaining vehicle's operating systems. this is yet a further multi-billion-greenback opportunity. 

Any success in these markets may propel BlackBerry inventory, which is currently priced at a deep bargain. 

Valuation

the ongoing pandemic has created a few uncertainties and slowed down auto construction. This has dented BlackBerry stock. The rate is down 21.5% 12 months to date. 

Now, it trades at just thrice earnings and two times ebook price. bear in mind that application patents and the value of the QNX platform isn't completely mirrored in tangible ebook price. In different words, BlackBerry inventory is trading at a steep discount to intrinsic value. That should still make it a great addition to any value-oriented investor's lengthy-time period portfolio.  

The investment case for BlackBerry stock is pretty compelling. It could be the reason savvy buyers like Prem Watsa have been so dedicated to it. The inventory has been a everlasting fixture of Watsa's portfolio for years, and the billionaire appears to have complete self assurance it is going to finally deliver outcomes.

base line

After years of wealth destruction, BlackBerry inventory ultimately seems to have bottomed out. The enterprise's market price doesn't fully replicate its potent patent portfolio and possibilities for future increase. The enterprise has a genuine shot at being a cybersecurity chief. It may even be a pivotal place in the emerging self-riding motor vehicle industry. both are multi-billion-dollar industries.  

I trust BlackBerry inventory is the best addition to any value-oriented portfolio. 

The put up BlackBerry (TSX:BB) stock: Too cheap to ignore regarded first on The Motley idiot Canada.

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idiot contributor Vishesh Raisinghani has no place in any of the stocks mentioned. The Motley fool recommends BlackBerry and BlackBerry.

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