BlackBerry’s bod announces formation of special committee to explore strategic alternatives – JV’s or sale of co

0 mins. to read

Prem Watsa

With Prem Watsa resigning from the Board of Fairfax Financial this weekend it looks like our call on Blackberry last week was particularly prescient (see here – The stock is one of the largest stock plays in our Global Macro fund and we expect that in the event of an outright sale that a price closer to $15 than $10 will be achieved.

Book value still comes in around $12 and although a management involved purchase obviously creates the conflict of them looking to buy it on the cheap, particularly if Watsa is involved, we doubt that an independent non exec board would allow a fire sale with the $3bn cash backing. At the very least, this process will now flush out other interested parties.

Any weakness towards the $10 level and we will look to add to our position.

R Jennings, CFA. Titan Investment Partners.

Take part in our poll

Which asset managers’ products do you hold?

The Master Investor Show 2020 tickets are now available. Join us at the Business Design Centre on Saturday 28 March 2020.

Book your FREE tickets today using code: MIBLOG

Comments (0)

Comments are closed.


Get real investment insights from some of the best minds in the business - with our free Master Investor Magazine.