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Robert W. Baird senior research analyst William Power on the outlook for Research in Motion.
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Let's get the Research in Motion take a look at the -- -- is jumping once again crack in crack in at least at seventeen dollar mark 1759 right now.
Heavy volume today how much of this is due to a potential licensing deals CEO Thorsten Heinz also talking about selling.
The entire company may be is just excitement over Blackberry ten due out at the end of the month a lot of buzz.
From CS Shibani Joshi telling us about bass joining us now from Dallas William power Robert W Baird senior research analyst has -- an underperform rating.
And seven dollar price target.
On the stock but just talk about where the stock is right now we're treating your book value this is a stock that many had discounted it was -- -- to be torn apart and now there's renewed.
Interest in this company is Blackberry ten really gonna deliver -- you think.
But by the get into the data still facing a significant uphill challenge with this the stock right now is up on -- -- -- the -- can turn ended the real numbers and blowing over the next couple of quarters.
There's lot of anticipation around to generate thirtieth event more than on Baylor new devices I think that's really what's -- driving the stock here more than any hype around him today.
OK so not licensing -- not convinced about that let's talk about the service revenue that they collect from carriers and in particular.
If there is a change in.
The -- been the company overall with a Blackberry ten -- some of those revenues go away some of those licensing revenues could not be a market negative.
Well you know you've hit the nail on the head -- this is that a classic case to be careful what you wish for the company today really benefits from the service revenue restraint which we think generates.
Gross margin of close to 80% and is really accounts for the bulk of the company's profitability.
-- of a more successful Blackberry ten is.
The more that actually is put at risk because most black -- subscribers of -- of the consumer subscribers will no longer pay.
A service revenue piece and so again.
-- -- The damned if you do damned if you don't.
-- -- and in the third quarter was 80% of gross profits obviously that's -- -- be one thing to watch but.
Anymore hence do you think from leadership when it comes emanate know that you're saying that maybe this -- is looking a little too hard here.
But certainly if there was some type of at least split off in the company with the hand held.
That held device division was sold off or something else maybe there was a partnership -- wouldn't that be a positive for the stock they know they -- not role.
Up on it right now but our union listening for that link H.
Yet no question about it we'll be looking for an update on strategic alternatives and this is something the company has voice over the course the past year and there's no question they've looked at the strategic alternatives and will probably continue to do that.
And that could include a -- the handset business the whole business perhaps a licensing deal I think all that.
Is still very much on the table and investors have to look no further than new Google -- Motorola or or HP -- by Paul there is evidence there could be interest out there.
Just not clear us right now you know who that would -- that's not something we'd be banking on.
Bubble certainly -- Philadelphia -- -- I -- you can't blame them William but the sentiment you wanna ask you about the competition.
We're gonna be hearing from apple this week as wall that is tomorrow.
Overall apple Samsung.
-- Blackberry can -- Compete in this environment is ten really do you think -- -- up to -- to really.
Frankly safe ran at this point.
Well I don't think you can but again the proof will be in the putting right not I think -- rates and will represent a significant improvement for the Blackberry devices are that -- that there's any question about that and I think it will.
-- in many respects made attributes of both IOS and android you know bring to the table to those respective.
Manufacturers will -- -- you know apple or Sampson the real question for me is.
Hasn't had that extra sizzle -- entice customers who were once Blackberry subscribers to come back to the -- family at.
We're gonna -- the question.
Absolutely I know a lot of those corporations that have been trending towards the iPhone will they either go back to have to -- barriers to -- I was sick with them at least.
William power Robert W Baird senior research analyst William thank it.
They -- may well.
