No one's stepping in until $42!!!...... Will test support super quick if no resolution. Stock market is juiced to the max with QE and loose money policy. Any sign of liquidity reduction by the Fed voluntarily or in this case un-voluntarily will mean a 50% correction in all stocks. You go from pricing for growth to pricing for a recession.
The whole stock market is a "risk on" trade based on loose money and QE. Loose money and speculation is what is pushing the internet stocks up; once you get any type of risk off trade then you will see these stocks get hammered as they are trading at 60 to 100X PE based on future growth. YOu will get no growth in FB if there is a default; you will get the exact opposite...massive cuts in spending and advertising. Monetization of the FB members is what the high multiple is about so any change in consumer spending will result in companies cutting advertising of all forms (print, digital, video, etc).
There is no value here. BB10 Value = $0, Playbook = $0, Phones = $0, Brand = $0. There is not one desirable, sellable product that this company owns!!! They took 5 years to launch BB10 which is a complete dud and worse than the IPhone 2.
At the end of the day their bloated valuations are only supported when loose money is available. At any sign of a true crisis all the smart money leaves.......
Those instiutionsthat are long are throwing everything at the wall to see what sticks??? Or doesn't stink. Take the 30 cents and run they are burning 3 Billion a year and making "0" dollars. Their reputation as a phone maker is damaged beyond repair after taking 5 years to launch BB10 which isn't any better than Iphone 2 software. Who's going to pay anyhting beyond patent value for this company?
That humans are suckers and will buy what others buy and never learn from their mistakes. The US is essentially bankrupt and people are buying FB like it has value when all it has is a database. Guess what happens in a recesssion; advertising will drop like a rock. Guess what happens when companies pull back on advertising? FB drops like a rock.
LOL..... People never learn..... Another internet bubble.... last bubble was the same 40 to 200X PE with promise of companies growing into their valuations. They never did and the whole space imploded!!!
It's not insanity but Bernanke and Obama have essentially killed capitalism in order to preserve a bubble economy that they had to save. The housing bubble basically launched huge gains in income to middle tier workers (plumbers, welders, eletricians, real estate agents, builders, etc, etc) allowing these people to spend more money driving up prices in property and demand for cars, vacation homes, etc. Also remember that this increase in property prices also increased taxes in all states through property taxes which meant increases in pay for all municipal workers. This virtuous cycle of spending was great until we found out that it was all a scam based on loose credit and home sales to unqualified buyers (even a dog bought a house).
So if they didn't pump a trillion dollars a year in into the economy what you would of seen was a massive deflationary spiral globally which would of meant a huge recession that would of meant 30% unemployment for years and years. So the US is bankrupt which is why they have to have the raise the debt limit debate every year because the US is paying one credit card with the other credit card hoping that no one notices. It definitely saved the economy but the next bubble is already forming into the stock market bubble as the stimulus money is creeping into sales and the stock market essentially forming a false economy on its own.
What drug are you on? Who wants to buy a dying company with no market share burning through 3 billion a year building phones nobody wants anymore?
Your on drugs MSFT just bought NOK!! and GOOG owns MOT!! They are not going to buy BBRY so they can lose even more $. SInce buying MOT GOOG sales on phones are down double digits. The only escape for BBRY is in a coffin.
You can see it in the price action. All these phony rumors are keeping BBRY afloat at $8 but it's true value as a company is now sub-$5 with all the underlying problem and sales trends that it has encountered. No one wants a BBRY phone is the fundamental problem with the stock which CANNOT be fixed in a year or two.
Remember this is a CEREBUS bid bounce if no bid materializes tomorrow you guys will be right back at $7.50 in the AM!!!!
Someone tell me how a company bleeding $3 Billion a year is going to get an offer of $9 when it has 2 Billion in cash?
They are worth $0 as they took 5 years to launch BB10 which failed miserably. They bled all their cash into redesigning phones that no one wanted. Tried at every point to emulate Apple by investing into Playbook which they sold at a loss per unit. And after all this time there are still no apps on the Blackberry App store that anyone wants. They are bleeding cash continually and they do not own any technology that the competitors want. Anyone taking BBRY private will either break the company up (Value=$6) or stage another come back with another round of phone and software redesigns that will cost anoth 2 Billion......
Why would you cover when they announce more cuts and an even BIGGER LOSS. It makes the $9 bid even more unrealistic then ever.