Citron's Andrew Left Hits The Airwaves To Explain His Bullish BlackBerry Stance

Citron Research's Andrew Left made a bold call this week: Canada-based BlackBerry Ltd BBRY could be the next NVIDIA Corporation NVDA. After publishing a research report, Left was a guest on Bloomberg's "Bloomberg Markets" segment Thursday to follow up on his report.

He's Not Alone, And Here's Why

Left was quick to acknowledge he isn't the only BlackBerry uber-bull, and the case to buy the stock has been made by some Wall Street analysts. But what drew his attention to BlackBerry is a case study involving Mobileye NV MBLY, a stock he had shorted but was acquired by Intel Corporation INTC for $15.3 billion, although it is currently still trading on the NYSE.

The Potential Of Mobileye Technology

Mobileye's driver assistance technology was installed in 15 million cars, but the valuation behind the stock didn't make much sense, Left said. This showed the underlying value of having a technology that is millions of cars which led Left to find BlackBerry attractive since its QNX products is found in 60 million cars.

QNX 7.0 could be the operating platform that "your car runs on thinking that your car is a computer," Left added.

...And What It Means For BlackBerry

As Left mentioned in his research report, BlackBerry's huge exposure to the car makes it a target for a high-premium buyout. He suggested that the list of potential companies interested in acquiring BlackBerry is vast and includes "anyone who has remorse that they did not get the operating platforms in either computers or cars."

Bottom line, Nvidia's enterprise market capitalization has moved from around $5.5 billion to $85 billion at a time when revenues just doubled as the Street gave the company credit for just entering new business lines. In BlackBerry's case, a focus and emphasis on the QNX segment or on the Internet of Things will generate a higher multiple for BlackBerry's stock and push the stock higher.

At last check before publication, shares of BlackBerry were down 3.64 percent at $10.98.

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