Will Blackberry (NYSE:BB) investors shift to Kibush (OTC:DLCR)?


USD 4.80  0.04  0.83%   

Kibush Capital would continue recover faster as its shares surged to 66.67 percent against Blackberry's 2.4145%. As many rational traders are trying to avoid technology space, it makes sense to go over Blackberry a little further and understand how it stands against Kibush Capital and other similar entities. We are going to analyze some of the competitive aspects of both Blackberry and Kibush.
Published over two months ago
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By analyzing existing fundamental drivers between Blackberry and Kibush, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Kibush with a short position in Blackberry. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Blackberry has an asset utilization ratio of 17.88 percent. This suggests that the company is making $0.18 for each dollar of assets. An increasing asset utilization means that Blackberry is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Blackberry's Liquidity

Blackberry financial leverage refers to using borrowed capital as a funding source to finance Blackberry ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Blackberry financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Blackberry's total debt and its cash.

How does Blackberry utilize its cash?

To perform a cash flow analysis of Blackberry, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Blackberry is receiving and how much cash it distributes out in a given period. The Blackberry cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Acquisition by Kurtz Philip S of 80160 shares of Blackberry subject to Rule 16b-3

Legal trades by Blackberry insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Blackberry insider trading alert for grant of restricted share units by Kurtz Philip S, CLO Corp. Secretary, on 29th of September 2022. This event was filed by Blackberry Ltd with SEC on 2022-09-29. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Blackberry Further

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Blackberry revenue. Based on the latest financial disclosure, Blackberry reported 712 M of revenue. This is 82.53% lower than that of the Technology sector and significantly higher than that of the Software—Infrastructure industry. The revenue for all United States stocks is 92.45% higher than that of the firm. As for Kibush Capital we see revenue of 139.04 K, which is much higher than that of the Software—Infrastructure

712 M
BB712 Million99.98

Can Blackberry build up on the current rise?

Blackberry information ratio is up to 0.0. Blackberry exhibits very low volatility with skewness of 0.01 and kurtosis of -0.83. However, we advise investors to further study Blackberry technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Blackberry's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Blackberry's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Blackberry Investment

Whereas many of the other players under the software—infrastructure industry are still a bit expensive, Blackberry may offer a potential longer-term growth to investors. Taking everything into account, as of the 27th of September 2022, our research shows that Blackberry is a rather slightly risky investment opportunity with a below average probability of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. However, our overall 90 days recommendation on the company is Sell.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Blackberry. Please refer to our Terms of Use for any information regarding our disclosure principles.

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