Is BlackBerry a Buy Right Now?

I'm sure most people know that the mobile phone company BlackBerry BBRY has had massive problems over the past few years.

Of all the industries, the mobile phone sector has experienced huge changes at the top. When you think back over the past two decades, the only constant in this market is change.

As technology has changed, so have consumer choices. Along with consumer choices that have changed, some firms have responded quite quickly, others like BlackBerry have been slow to adapt.

It's amazing to think that not too long ago, BlackBerry held a firm grip on the smartphone market. Everyone from business executives to celebrities were clamouring to get their hands on a "crackberry", as they were affectionately called.

But that was then, and this is now.

The stock has dropped a large amount over the past few years and many believe the firm is done. Yet others believe this is a cheap stock that can rebound. While they might not regain their past glory, the bulls are trying to make the case that the sum of the parts are worth more than the share price.

A "sum of the parts" calculation is one in which an investor (large institutions) try to determine what the entire is company is worth, each piece and division at a time.  In the case of BlackBerry, the firm has over $2 billion in cash, no debt, a large inventory of patents and still millions of users, along with a brand that while tarnished is still known as being one of the strongest for safety (difficult to hack).

As it appears the recent deal to buy the company has failed, this has sent the shares plunging and now many investors are looking at the company with confusion.

Is this the time to buy BlackBerry because the underlying assets are worth more than the current market capitalization of $3.3 billion or is the firm headed down the tubes and the shares ultimately worth a lot less?

To find out my analysis for free, just click here BehindWallStreet.com

By Joel Laceda - November 4, 2013