Tomahawk, WI 11/06/2013 (BasicsMedia) – Nothing good seems to be coming out of BlackBerry Ltd (NASDAQ:BBRY) at the moment as its stock continue to tumble even more, amid concerns of what holds as the future of the former mega phone company. The company’s stumbled even more by 16% after the company announced that a deal by Fairfax Financial holding to purchase it had fallen through. This has necessitated BlackBerry to decide on selling its $1 billion worth of convertible bonds to other investors inclusive of its largest shareholder Fairfax Holdings. Fairfax had been given the deadline of Monday to complete the purchase deal that was thought to be around $4.7 billion. BlackBerry had anticipated that other investors will join the bidding war in an attempt of getting a lot more from the sell deal. No other bidders stepped in prompting the company to decide on selling its Convertible bonds.

Some of the investors that were thought to be in line to purchase the hard hit phone company included Amazon.com Inc., Facebook Inc., Hewlett-Packard Co and Pandora Media Inc. The biggest question in many investors is what is the final play for BlackBerry? A breakup of the company seems to be the only solution to the troubles the company is facing at the moment as no investor is willing to commit to the entire company. Investors have even gone further to assign no value to the handset portion of the business which was thought to be a bit viable. The company device sales have been declining even after launching its latest brand in the name of BlackBerry 10.

 BlackBerry has continued with a certain degree of consistency to record a steep decline in earnings over the past quarters as investors continue to shy away from the company. This is clearly shown on its fiscal loss of $1.20 the past year and $2.24 the prior year. The company compared to the same companies in the same bracket has also recorded declining net income which has decreased by an astonishing 310.6% from -$235 million to -$965 million. The company return on equity also continues to decline implying weaknesses in the organization. BlackBerry return on equity currently trails that of the industry and of S&P 500.

BlackBerry Ltd (NASDAQ:BBRY) net operating cash currently trades on dangerous grounds at a low of -$144 million as compared to the same quarter a year ago, a decline of 133.96%. Blackberry’s weaknesses are seen in various fronts ranging from feeble growth in its earnings with deteriorating net income and weak operating cash flow. Over the past 30 days the average volume of traded shares of Blackberry has been 26.2 million a day with its shares declining by 33.2% during this fiscal year alone. According to its interim CEO Chen who is looking to turnaround the fortunes of the iconic company,” it is going to take time discipline and tough decisions to recapture the lost glory of the company”. The company recorded second quarter losses totaling $965 million as compared to its fierce rivals such as Nokia Samsung and Microsoft which continue to perform well in the market.

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