Tomahawk, WI 01/10/2014 (BasicsMedia) – Those who knew Blackberry Ltd (NASDAQ:BBRY) many years ago can recall that it was the leading manufacturer of smartphones, in fact it is credited as the pioneer of smartphones. However, today the company is a pale shadow of its former self. But even as BBRY seems to be stuck in the danger-zone, investors are happy buying the cheap stock. The question that comes to mind is whether you too should join into buying the stock now.

To provide answer to this concern, we should look at the reasons prompting the buyers to bet on this stock now. But again, answer why Blackberry Ltd (NASDAQ:BBRY) is being bought now will be incomplete without addressing why it was being sold massively just a few months ago. I will answer these questions together this way:

When Apple Inc (NASDAQ:AAPL), Samsung Electronics and other companies started making smartphones, they took over the bigger share of the market from BBRY. Unfortunately, BBRY management didn’t see this danger company and only realized when things had gone out of hand. With sales declining and the company finding it hard to challenge the innovative edge of the newcomers, investors had no choice but to jump ship, and so they did it en masse, sending the stock in downward spiral.

But now investors are buying BBRY because it has shown that it is not going out of business as many people had been made to believe. The company tried to offer itself for sale but failed to attract a good buy opportunity, only its leading shareholder Fairfax Financial placed a bid but couldn’t push it further. So the board decided that instead of selling the iconic company, they would raise many for its recovery.

What followed as a debt offering that collected $1 billion for the come to start its recovery, and as part of the recovery, a management change was proposed. The board brought in John Chen as interim CEO and allowed him a free hand to build the Blackberry Ltd (NASDAQ:BBRY) dream team that would spearhead speedy turnaround.

With these developments, the company is right on tract to recovery, but the interesting thing is that it is avoiding the risky devices business which started its troubles; instead, the company is carving a niche in communication security.

The company’s game-plan is quite simple. It is seeking to dominate the protected data and communication market. Its target clients are governments, armed forces, banks and enterprise customers who are seeking high-end communication protection. The question now is whether this niche is enough to put many back to the pockets of investors.

The opportunity

Blackberry Ltd (NASDAQ:BBRY) is the sole smartphone device maker that is trusted for its secure device-communication platform. This is why the company is getting opportunity for this service from the U.S. government, German government and many other companies around the world that value safe device communication.

The company is already cutting deals with many customers for this business and recently at the ongoing International CES in Las Vegas it announced plans to set up a security center in Washington DC. And even before that, Pentagon has announced that it was switching its devices communication platform to that provided by Blackberry Ltd (NASDAQ:BBRY).

Bottom line

Blackberry Ltd (NASDAQ:BBRY) is currently valued as scrap. You can take up the stock now that it is cheaply valued, bearing in mind that in the next 2-3 years, it will be creating the new millionaires in tech industry.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.