BlackBerry gets a lifeline

Article Excerpt

BLACKBERRY LTD. $6.29 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.6 million; Market cap: $3.3 billion; Price-to-sales ratio: 0.3; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) has sold $1 billion U.S. of convertible debentures to a group of private investors. These buyers also have an option to buy up to $250 million U.S. in additional debentures. If all investors convert their holdings, the total number of shares outstanding would rise by 19.2%. The cash will help the smartphone maker complete its restructuring, which includes cutting 40% of its workforce. The company will also shift its focus away from consumers to business and government clients, who rely on its networks to send encrypted mobile email messages and other sensitive data. BlackBerry is still a hold, but only for highly aggressive investors. investors…