Stockhouse post (thoughts on the mayhem) by earthsciencnerd
My view of the events of the last two days. I strongly suspect Thor gave his legal department the green light to address these analyst reports if a legal opportunity arises. This is from my view as a law student. Blackberry has been aware of these short-driven "news" bits, but at this point have been restrained in responding. Why? None had crossed that "red line" yet, and if Blackberry had responded:
(1) They would likely have had no legal basis to respond
(2) Would have just brought more attention to the news
(3) Create the perception Blackberry was afraid and had something to hide.
Yesterday's response from BB was amazing. Here is my take on how this unfolded. Thor and company have been well aware of this negative media spin, I was alerted to it when, during the CNBC interview he did on Q4 results day, he confirmed to have read the "rocket science" article. He's been huddling with his legal team. Now, this is based on my limited knowledge of legalese as a law student. The legal team probably told him they do not have enough to launch an action yet. Yesterday, the news came out. I see the legal team quickly calling upstairs to confirm if these return numbers are true or not. Once they got confirmation, they conferred and strategized, and I bet within an hour that response was typed up and distributed, and they began preparing their application to the securities commissions. I really felt at some point, Thor told his legal team to proceed without needing authorization if they felt they had the evidence needed. Yesterday was it. Again, another reasong I have faith in Thor as a CEO. The speed at which the response came from Blackberry sure points to this power given to the legal team.
The legal team knew one analyst was going to take it too far, and true to form, small fish Detwiler took the bait. Now they are the goats for these larger hedge funds. Detwiler's reputation is sinking now. They may have a world of trouble on their hands, especially if any tra