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Blackberry (BBRY)’s search for strategic alternatives

13 Aug

We at Rhodes Holdings LLC, working in conjunction with ReCap Marketing & Consulting LLP and Lunaria Holdings LLC, are working with a client currently that is working towards “going private”. They are successful in their operations, management is very effective, and their market is flourishing, BUT their industry is unattractive to “WallStreet” and their stock price is lagging. I would add “unattractive industry” to the list that dduane sets out here.

PRACTICAL STOCK INVESTING

a 6-K

Yesterday BBRY filed a 6-K (it’s a foreign–i.e., Canadian–company, hence it’s a 6-K, not an 8-K) with the SEC, which consists of the press release it issued at the same time.

In it, BBRY (BB for you Toronto Stock Exchange fans) says it’s setting up a committee to explore strategic alternatives, which the firm defines as “possible joint ventures, strategic partnerships or alliances, a sale of the Company or other possible transactions,”

BBRY also says the board member, Prem Watsa, CEO of BBRY’s largest shareholder, investment firm Fairfax Financial, has resigned from the board citing “potential conflicts” that may arise as the committee does its work.

What’s going on?

It seems to me that BBRY effectively hung a “For Sale” sign around its neck in March 2012–and has had no takers.  So the announcement appears to mean–and is being widely taken on Wall Street as meaning–that BBRY…

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Posted by on August 13, 2013 in BLOG

 

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