An analyst is saying that Canadian phone maker Blackberry has already spent $800 million of the $1 billion investment it received to save the company.
StreetInsider reports analyst Pierre Ferragu saying, “As we expected, Fairfax’s attempt to take out Blackberry has failed, driving the stock to all time lows. We believe the near term will be very challenging, and we model almost 800m burnt in this quarter alone.
“However, our detailed analysis shows that the company has assets worth $6bn-$13bn. In this context, current price reflects a conservative SOTP valuation, with limited room for further decline in the stock price also including liquidation costs.
“We upgrade the stock to market perform, with a target price of $5.5, as we think that most of the trade is now behind us, while it is also too early to take a position on the potential success of the company's turnaround.”
Can Blackberry be saved with the $1 billion investment, or do you think it needs more? Drop a comment below.