If you blinked, you may have missed it. Research In Motion ($RIM) officially changed its name to BlackBerry ($BBRY) and released its very long awaited BlackBerry 10, with the intention of re inventing the smartphone market.
So the question you want to know is, “Should I be investing in Blackberry?”
The short answer: No.
The longer answer: Keep reading:
1. At this point, there is no ‘investing’ in BlackBerry. This company has traded between $5-$150 over the last few years… This is red flag number one, and why I believe there is no ‘investing’ in BlackBerry, only trading. What’s the difference?
Traders dont worry about long term growth, they are often in and out within a day. A stock like this a trader’s dream, and a HUGE reason you should avoid it.
2. The BlackBerry 10 is BlackBerry’s hail marry pass to save the company and reinvent the industry. Does this phone look like the industry has been reinvented?
I showed this photo to my wife and I said it looks like a cheap iPhone knock off. Her response: “It looks just like a Droid phone.”
So BlackBerry’s efforts to ‘re-invent’ the industry is to come out with their version of a product that already exists.
3. EcoSystem: BlackBerry simply doesn’t have it. At least a competitive one. Google’s Android and Apple’s iPhone is more than just the hardware. They make their real money in the cash flow created in their EcoSystems.
When you buy an iPhone, you have access to literally millions of Apps with more added every day. Microsoft is learning this the hard way with their recent dud the Windows 8 phone.
So should you invest in BlackBerry? If you like the phone, buy it. But a company can make a nice product and still not be a valuable investment. BlackBerry is one example of these companies for the reasons above.
This phone can be an amazing product, but your money should be your number one concern when investing.
You should be investing in companies that will be around forever. Do you think this company will be around for ever? Look at some of the biggest tech names over the last few decades.
HP. Circuit City (retail). Apple (Up, then down, then up, then down…) Kodak.
There are just too many other great investments out there to be considered before coming close to this company. And if you haven’t noticed, the Dow Jones is close to hitting 14,000! Remember a few years ago when the Dow Jones touched 6,000?
Don’t look now, but we are in an incredible Bull Market and the Fed plans to keep printing through 2014… if you haven’t started yet you should start investing soon.
Here is a good place to start: Why you MUST be investing in Dividend Paying Stocks.