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Topic: Dividend Stocks

BLACKBERRY $16 – Toronto symbol BB

BLACKBERRY $16 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.0 million; Market cap: $8.4 billion; Price-to-sales ratio: 0.7; No dividends paid; TSINetwork Rating: Above Average; www.blackberry.com) is the new name of Research in Motion Ltd. (old symbol RIM). (Note: The company’s legal name will remain Research in Motion until shareholders approve the name change at the next annual meeting.)

The company recently launched two smartphones powered by its new BlackBerry 10 software: the BlackBerry Z10 uses a 4.2-inch touch-screen interface, while the BlackBerry Q10 features a smaller screen and a physical keyboard.

BlackBerry has already started selling the Z10 in Canada, the U.K. and other countries. The company will launch the new phone in the U.S. in March. It should launch the Q10 in April.

Unlike other smartphone makers, BlackBerry also sells software that helps businesses and governments encrypt mobile email messages and other sensitive data. The company has used its expertise in this area to create BlackBerry Balance, a feature that lets the new phones easily switch between business and personal modes. BlackBerry Balance should help RIM satisfy its corporate customers’ security needs while letting individuals enjoy personal services, such as music and games.

Anticipation of the new phones helped lift the stock from $6.10 in September 2012 to its recent peak of $18.49 in January 2013. Even though the phones have received positive reviews, investors fear the delay in selling them in the U.S. will further erode BlackBerry’s U.S. market share. That pushed the stock down to its current level.

However, the new phones should help the company compete with Apple’s iPhone and devices powered by Google’s Android software. The new corporate name also helps it cash in on the popularity of the BlackBerry brand in emerging markets.

BlackBerry is a hold.

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