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BBRY Predictably Crashes — BlackBerry Believers Must Face Reality

blackberry logo bbryI wrote about BlackBerry (BBRY) earlier today in this blog, saying that BBRY stock “has been circling the drain,” and I warned about inevitable writedowns to come.

Admittedly, though, I didn’t expect BBRY to take out the trash on a Friday, just hours after that analysis, and reveal just how bad the losses have been.

But that’s just what BlackBerry did, posting earnings (or the lack thereof) ahead of schedule to reveal deep losses and an utter defeat for BBRY in the consumer smartphone market. The damage was nearly $1 billion in the most recent quarter.

After writing about BlackBerry stock regularly, there are plenty of folks on this blog who criticized me for my bearish view — including comments on the earlier post today implying I was being paid to bash the stock and move the markets.

But I don’t take sadistic glee in rooting against BlackBerry, or despise BBRY smartphones because I am an iPhone fanboy. I don’t even have a personal stake in the stock.

The reality is that I was and still am simply trying to keep investors away of BBRY stock to prevent them from losing a fortune. And the crash in BlackBerry stock Friday on a not-so-surprising loss of nearly $1 billion in the tech stock was exactly the event I hoped to keep investors from being a part of.

So now, can we stop debating how bad BlackBerry is or whether criticism has been valid for across the past six months? Can we finally agree that BBRY is doomed, and is little more than a speculative trade by aggressive investors to play the margins before it marches into oblivion?

You simply can’t spin this horrible news. Sure, BBRY said it would shift its focus toward business and the “prosumer” market — but that means giving up altogether on the lucrative consumer smartphone space dominated by Google (GOOG) and Apple (AAPL). And by the way, Microsoft (MSFT) has already shown that it has the enterprise chops to blow away BlackBerry in the market for business-use hardware.

There are deep layoffs, a plan for a fire-sale buyout to sell BBRY for parts, continued lack in market share …

I won’t even bother to kick this dog around anymore. If you don’t know BlackBerry is doomed now, you never will.

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Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

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