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BlackBerry Limited Message Board

  • maria_bartimomo maria_bartimomo Sep 29, 2006 5:27 PM Flag



    scroll down:

    Receivables up, inventories up

    Trade receivables 376,510 315,278
    Other receivables 32,178 31,861
    Inventory 195,665 134,523

    Liabilities up too:

    Accounts payable $ 120,685 $ 94,954
    Accrued liabilities 178,939 144,912
    Income taxes payable 38,943 17,584

    THIS IS HOW THEY MADE THEIR NUMBERS. Even then net income up only 27% This shit is trading at pe = 52 when the biggest bubble in the US history The REAL ESTATE is bursting

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    • Hey honey you are on to something.Love You

    • Maria looks like the bozos took all your money..You sound a little upset, lose some money today? bwahahhaaaaaaaaaaaaa

    • hmmm, "preliminary second quarter results" "potential restatement" Beats est. (at least in "unaudited" release) by less then 5% but the stocks closes up almost 20%. hmmm, all pre-market "work", flatlined the charts all day. Guess that would take a lot of shares to keep it up, all day. Smells a little fishy. hey, we can all look foward to "Profit taking Monday". Did anyone really pay $100+ a share today?

    • So, what is your point?

    • as long as the stock price is up, regardless of the book cooking or manipulation.

      Is there any way to straighten things out without the initiative of the shareholders ?

    • oh, i get it; they made their earnings numbers by massaging working capital accounts! right?

    • Maria,

      Maybe you can shed some light on this. Like you, I found the market reaction to figures that aren't going to be audited for quite some time a little troubling. It seemed convenient to postpone any filings and literally blow sunshine up investor's a$$e$.

      That said, can you tell me how stock that is bought back is treated? By my calculation, the booked $53M in profits on the 3.2M shares they purchased at 64 which closed out the quarter at $82. That translates to about 27 cents per share.

      The reduced share count also tricks out already stretched numbers. Any idea which banks helped them with the buy back?


      • 4 Replies to bitter1andthendone
      • from their balance sheet:

        The outstanding shares they are using to calculate EPS is:

        2006-9-2 2006-6-3 2005-8-27
        183,808 186,523 191,024

        So by buying back shares, they effectively reduced # of outstanding shares, boosted earning per share

      • A company cannot book income from a stock buy back. The buyback takes place entirely on the balance sheet, not the income statement. CASH is reduced and so is STOCKHOLDER'S EQUITY. The only impact on the income statement is that the number of shares are reduced, and this has an impact on EPS. The impact however depends on a number of factors. For example, what return would the cash have given if they had not bought back the shares? If it would have given a return higher than the Return on Stockholders Equity then it can actually reduce EPS. But in this case I don't think it has material impact on EPS. Also to respond to Maria, as sales increase Accounts Receivable and Inventory normally increases at about the same percentage, thus one would expect a healty increase in those two items. The company has a good quarter, but it is being compared to last year where performance was poor. Their forecast seems a bit aggressive.

      • Fasinating math. Where does it show that the increase in value of repurchased shares was taken into income? It doesn't.

        Actual fact is that those 6.3 millions shares that were repurchased at an average cost of $62.10 were cancelled. They no longer exist. Check the last sentence of the annual report on page 62 where it states: "All common shares
        repurchased by the Company pursuant to the Common Share Repurchase Program have been cancelled."

        The only impact they could have had is that the earnings would now be spread over 6.3 million fewer shares making the per share income number higher.

        So, lets adjust the earnings per share. One year ago, the number of basic shares was 190.896 million when they earned $0.58 per share. Use the same number of shares this time for an apples to apples comparison of earnings per share and you get $0.737. Not $0.76 granted, but not much of an impact and if I'm not mistaken, that is still a nice 27% growth in earnings per share.

        However - One year ago, the share price the day after earnings closed at $70. This year it closed at $102.65 a 46.6% jump in price based on a 27% growth in earnings per share. That is why I shorted the stock yesterday. It went way overboard. It should drop back here to a more reasonable level. Let's monitor actual Pearl sales as we head towards Christmas and then head back up on better information to justify the price.

      • Wow. You hit it on the nail on the head. -27 cents is a huge miss. I think the buyback bought back around 5% shares which means they actually had a terrible quarter if it weren't for those two things. This company is so crooked. They gave such high forecast to counteract the the options backdating. PE 52 is gonna get chopped.

    • the trade a/r is 376 billion, on sales of about 2.5 billion $
      my God this is a big scam, you are right!!!

      let's all sell

      the whole world must be bozos, thank goodness for a person like you to open our eyes.

    • LOL

      they should come out and explain. at least some talking heads in wallstreet should cover this problem, rather than just blindly exalting a mediocre company,

    • Also look at the assets, over the last six months no increase in assets, the only thing this company has to show for all the money is their own stock. Not a bad thing at this point, but I would like to see them diversify.

      Another point they seemed to have managed the product transitions very well, I have never seen a high tech company trasition without excess inventory to write down. I am worried that 195 million in inventory may be a ticking time bomb.

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