Friday, February 21, 2014

Unusual Role Reversal Force Driving BlackBerry

BlackBerry Limited (NASDAQ: BBRY) just keeps continuing to amaze on the upside. It was not that long ago that it was hitting 52-week lows under $5.50, and on Friday the stock has already challenged the $9.00 mark.

John Chen’s actions here may only be part of the action. The stock of the struggling smartphone player is up a sharp 20% from the $7.44 price at the end of 2013. Friday actually marks the second trading day of the twelve trading days of 2014 that we have seen the stock go above $9.00.

Citron Research is usually known for its short sell idea focused articles, but the research shop has shown that the short selling mentality here needs to be dropped. A short squeeze could drive BlackBerry shares even higher, maybe even up to $15. Citron’s report is a 12-page reversal of fortune report. Again, Citron is often known for being negative on companies.

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Blackberry shares were up 4.4% at $8.94 on almost 20 million shares. The 52-week trading range is $5.44 to $18.32.

We would point out that the consensus price target is down at $7.00, but analysts have not been key drivers on most days and investors are generally not buying or selling BlackBerry based just upon its valuations.

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