The Successful Investor Hotline – Friday, September 20, 2013

Article Excerpt

BLACKBERRY LTD., $9.08, Toronto symbol BB, fell 16% on Friday after the company announced that it will cut 40% of its workforce due to slow demand for its new BlackBerry 10 smartphones. In its fiscal 2014 second quarter, which ended August 31, 2013, BlackBerry sold 3.7 million phones. That’s down from 7.4 million phones a year earlier. BlackBerry will also write down the value of its unsold phones. As a result, it expects to report a loss of between $950 million, or $1.81 a share, and $995 million, or $1.90 a share, in the second quarter (all amounts except share price in U.S. dollars). If you exclude unusual items, it will still lose between $0.47 and $0.51 a share. The company continues to examine several alternatives to increase shareholder value. These plans could include selling some or all of its operations, as well as potential business partnerships with other firms. BlackBerry is still a hold. Please make sure you are logged in to…