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The 'Internet of Things' Increases BlackBerry's Appeal
BlackBerry could make for an interesting takeover target for any number of companies
Michael Comeau    

This article was originally posted on the Buzz & Banter, where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Following BlackBerry's (NASDAQ:BBRY) better-than-expected first-quarter earnings report, the regular takeover talk we used to hear about this company could start up again.

CEO John Chen just said on CNBC that the company is not for sale, but added that "everything is possible," implying that perhaps the Canadian government could accept a foreign buyer from the US or Asia.

The enterprise server business remains solid, and its smartphone unit may be approaching stability with a 23% quarter-over-quarter increase in unit sales. Some 2.6 million units were sold through to actual customers, and both earnings and revenues were above expectations. Net cash stands at about $1.7 billion, and the company expects to generate positive cash flow by the end of the fiscal year.

However, the kicker for an actual deal may be Project Ion, BlackBerry's name for its 'Internet of Things' initiative, which is based upon its QNX software platform. The goal is to build secure interfaces between devices and the cloud, which seems like a good area for BlackBerry to play in. The company's not great at building attention-grabbing consumer devices, but it is very experienced with mobile networks and security.

QNX is best known for its inclusion in automotive systems. In fact, Apple's (NASDAQ:AAPL) CarPlay system actually runs on top of QNX. Apple provides the interface to the user, but QNX is the underlying base.

The Internet of Things is hot right now. Google (NASDAQ:GOOG) bought Nest Labs for $3.2 billion; Apple is rolling out its HomeKit initiative with iOS; and Internet-enabled wearable fitness gadgets are selling like crazy. Countless other companies, including ARM Holdings (NASDAQ:ARMH), Intel (NASDAQ:INTC), and Microsoft (NASDAQ:MSFT) are also aggressively moving to capitalize on the connection of the Internet to, well, everything.

The reason I find the craze so fascinating is that it's unclear whether people will actually want everything in their lives connected to some type of data network. Techies act like this is a foregone conclusion, but when it comes to home basics, many people just want things to work.

Nonetheless, I think the Internet of Things craze will heat up big-time this year, if for no other reason that the smartphone and tablet industries have slowed and thus investors will be looking for new areas of secular growth. That should drive a lot of interest in BlackBerry as a possible acquisition target for any number of companies.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
The 'Internet of Things' Increases BlackBerry's Appeal
BlackBerry could make for an interesting takeover target for any number of companies
Michael Comeau    

This article was originally posted on the Buzz & Banter, where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Following BlackBerry's (NASDAQ:BBRY) better-than-expected first-quarter earnings report, the regular takeover talk we used to hear about this company could start up again.

CEO John Chen just said on CNBC that the company is not for sale, but added that "everything is possible," implying that perhaps the Canadian government could accept a foreign buyer from the US or Asia.

The enterprise server business remains solid, and its smartphone unit may be approaching stability with a 23% quarter-over-quarter increase in unit sales. Some 2.6 million units were sold through to actual customers, and both earnings and revenues were above expectations. Net cash stands at about $1.7 billion, and the company expects to generate positive cash flow by the end of the fiscal year.

However, the kicker for an actual deal may be Project Ion, BlackBerry's name for its 'Internet of Things' initiative, which is based upon its QNX software platform. The goal is to build secure interfaces between devices and the cloud, which seems like a good area for BlackBerry to play in. The company's not great at building attention-grabbing consumer devices, but it is very experienced with mobile networks and security.

QNX is best known for its inclusion in automotive systems. In fact, Apple's (NASDAQ:AAPL) CarPlay system actually runs on top of QNX. Apple provides the interface to the user, but QNX is the underlying base.

The Internet of Things is hot right now. Google (NASDAQ:GOOG) bought Nest Labs for $3.2 billion; Apple is rolling out its HomeKit initiative with iOS; and Internet-enabled wearable fitness gadgets are selling like crazy. Countless other companies, including ARM Holdings (NASDAQ:ARMH), Intel (NASDAQ:INTC), and Microsoft (NASDAQ:MSFT) are also aggressively moving to capitalize on the connection of the Internet to, well, everything.

The reason I find the craze so fascinating is that it's unclear whether people will actually want everything in their lives connected to some type of data network. Techies act like this is a foregone conclusion, but when it comes to home basics, many people just want things to work.

Nonetheless, I think the Internet of Things craze will heat up big-time this year, if for no other reason that the smartphone and tablet industries have slowed and thus investors will be looking for new areas of secular growth. That should drive a lot of interest in BlackBerry as a possible acquisition target for any number of companies.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
The 'Internet of Things' Increases BlackBerry's Appeal
BlackBerry could make for an interesting takeover target for any number of companies
Michael Comeau    

This article was originally posted on the Buzz & Banter, where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Following BlackBerry's (NASDAQ:BBRY) better-than-expected first-quarter earnings report, the regular takeover talk we used to hear about this company could start up again.

CEO John Chen just said on CNBC that the company is not for sale, but added that "everything is possible," implying that perhaps the Canadian government could accept a foreign buyer from the US or Asia.

The enterprise server business remains solid, and its smartphone unit may be approaching stability with a 23% quarter-over-quarter increase in unit sales. Some 2.6 million units were sold through to actual customers, and both earnings and revenues were above expectations. Net cash stands at about $1.7 billion, and the company expects to generate positive cash flow by the end of the fiscal year.

However, the kicker for an actual deal may be Project Ion, BlackBerry's name for its 'Internet of Things' initiative, which is based upon its QNX software platform. The goal is to build secure interfaces between devices and the cloud, which seems like a good area for BlackBerry to play in. The company's not great at building attention-grabbing consumer devices, but it is very experienced with mobile networks and security.

QNX is best known for its inclusion in automotive systems. In fact, Apple's (NASDAQ:AAPL) CarPlay system actually runs on top of QNX. Apple provides the interface to the user, but QNX is the underlying base.

The Internet of Things is hot right now. Google (NASDAQ:GOOG) bought Nest Labs for $3.2 billion; Apple is rolling out its HomeKit initiative with iOS; and Internet-enabled wearable fitness gadgets are selling like crazy. Countless other companies, including ARM Holdings (NASDAQ:ARMH), Intel (NASDAQ:INTC), and Microsoft (NASDAQ:MSFT) are also aggressively moving to capitalize on the connection of the Internet to, well, everything.

The reason I find the craze so fascinating is that it's unclear whether people will actually want everything in their lives connected to some type of data network. Techies act like this is a foregone conclusion, but when it comes to home basics, many people just want things to work.

Nonetheless, I think the Internet of Things craze will heat up big-time this year, if for no other reason that the smartphone and tablet industries have slowed and thus investors will be looking for new areas of secular growth. That should drive a lot of interest in BlackBerry as a possible acquisition target for any number of companies.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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