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A reporter uses a Blackberry device to photograph Blackberry CEO John Chen as he speaks to reporters following their annual general meeting for shareholders in Waterloo, Canada in this June 23, 2015, file photo. (MARK BLINCH/REUTERS)
A reporter uses a Blackberry device to photograph Blackberry CEO John Chen as he speaks to reporters following their annual general meeting for shareholders in Waterloo, Canada in this June 23, 2015, file photo. (MARK BLINCH/REUTERS)

Schizas’s Mailbag

BlackBerry stock showing little evidence of an up-leg in the near future Add to ...

Could you take a look at BlackBerry?

Thanks,

Jim

----------------------

Hey Jim,

Thanks for the assignment. This will be the twelfth time since 2008 that I inspect the files concerning BlackBerry Ltd. (BB-T). The last time was on Nov. 30, 2015. The shares were trading for $10.62 and Carl was thinking of buying.

The research conducted on his behalf indicated that the stock was oversold in late September of 2015. The moving average convergence divergence (MACD) and the relative strength index (RSI)  had generated buy signals, attracting informed investors into the market. The advance took the stock through the 50-day moving average, running to $11 where it met resistance along the 200-day moving average.

It was advised to monitor how BB traded as it approached the release of Q3 results on Dec. 18.

A review of the charts will help determine the prospects for this investment.

Desktop users click on image to enlarge

The three-year chart depicts the move through the 200-day moving average in mid-December and the run to $13 by the end of the month on enthusiasm from the release of Q3 results. Sadly that was as good as it got.

The MACD and the RSI both generated sell signals near the top as the shares beat a quick retreat to support in the $9 range.

Desktop users click on image to enlarge

The six-month chart highlights the fact that the best approach to managing BB has been to trade it for profits. The move off the late September lows near $8.00 produced a nice gain in the last three months of 2015.

2016 is an entirely different story. There is scant evidence that we can expect a new up leg in the near future. The company is expected to report Q4 on April 1, 2016, which once again demands vigilance as we get closer to the event.

There are some suggesting that the future for BB is their secure communications expertise. The internet of everything will create greater mobile access to an increasing number of devices that draw the attention of the hacker community.

Next time I will inspect the charts for Crescent Point Energy Corp. (CPG TSX) and Veresen Inc. (VSN-TSX) for Angelo.

Make it a profitable day and happy capitalism!

Have your own question for Lou? Send it in to lou@happycapitalism.com.

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