BBRY Stock Is Back – Will 40% Run for BlackBerry Continue?

by Jeff Reeves | July 1, 2014 9:07 am

BBRY Stock Is Back – Will 40% Run for BlackBerry Continue?

BlackBerry (BBRY[1]) stock was left for dead in 2013, bottoming at under $6 a share. And after a brief rebound rally through early 2014, BBRY stock once again hit some trouble and sunk back to $7 or so.

Blackberry 185 BBRY Stock Is Back   Will 40% Run for BlackBerry Continue?[2]But now, BlackBerry stock is sitting pretty at more than $10 a share after a roughly 40% run in the past month or so. Longer-term, BBRY stock is actually up more than 30% year-to-date in 2014 to deliver almost five times the return of the S&P 500.

Which begs the question: Is BlackBerry back?

Hardly.

The long-term pressures on the smartphone company still remain, and BBRY remains deeply unprofitable.

But if you’re looking for a swing trade on momentum and sentiment, BlackBerry stock actually looks pretty good in the short term after its big run.

Here’s why:

BBRY Reorganization Buys Time: When Thorsten Heins was ousted as CEO at the end of last year amid a failed rescue plan, Chief Executive John Chen took over and since has been pushing BlackBerry to transform from a gadget manufacturer into a mobile solutions and software company. All the buzz over messaging software like WhatsApp and Snapchat also has helped return a bit of swagger to BlackBerry thanks to its respected BlackBerry Messenger secure messaging platform.

BlackBerry Earnings Pick Up: Though still operating in the red, BlackBerry released earnings in June that showed improvement and signs of stabilizing. BBRY still is burning cash, of course, but has a cushion of more than $2.6 billion in cash and short-term investments as of last quarter’s results to buy it some time.

Charts Looking Good: As InvestorPlace’ Head Trader & Strategist Serge Berger pointed out a few months ago, the technicals are looking quite good for BBRY — and if the stock can plow through resistance in the $10.60-$10.70 range, it could be headed for a trip into the $12-$13 range. Serge recently reviewed the charts again and reinforced that outlook on BlackBerry stock.

Jeff Reeves[3] is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks.[4] As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com[5] or follow him on Twitter at @JeffReevesIP[6].

Endnotes:
  1. BBRY: /stock-quotes/BBRY-stock-quote/
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/07/Blackberry-185.jpg
  3. Jeff Reeves: http://slant.investorplace.com/author/profile/jeff-reeves/
  4. The Frugal Investor’s Guide to Finding Great Stocks.: http://www.amazon.com/dp/B007KB9CSI/ref=rdr_kindle_ext_tmb
  5. editor@investorplace.com: mailto:editor@investorplace.com
  6. @JeffReevesIP: http://twitter.com/JeffReevesIP

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