Analysts Are Putting The Nails In BlackBerry's Coffin

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

BlackBerry Ltd BBRY shares traded lower in Monday's session, finishing at $8.80. After trading at the $9.50 level over the last six trading sessions, it plunged under $9.00 for the first time since mid-October.

Related Link: 3 Reasons BlackBerry Will Never Be Acquired

A host of analysts commented on the company this morning, with only Wells Fargo showing any signs of optimism. The firm cited the potential for "strategic alternatives," such as restructuring or divestitures as key elements for a turnaround in share price -- aside from a takeover.

On the other hand, JP Morgan wonders if aggressive cost cutting will doom BlackBerry, epecially if cuts in R&D will end up damaging the company over the long-run.

After a flat open, the stock immediately found resistance just ahead of Friday's close ($9.46), reaching $9.45 before reversing course.

The ensuing decline attempted to find support in between its October 15 low ($8.65) and high ($8.83). By the end of the trading session, the stock was not able to distance itself from this crucial support level.