BLACKBERRY LTD. $9.36 - Toronto symbol BB

BLACKBERRY LTD. $9.36 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.6 million; Market cap: $4.9 billion; Price-to-sales ratio: 0.6; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) has sold an additional $250 million worth of convertible debentures (all amounts except share price and market cap in U.S. dollars) to its largest shareholder, Fairfax Financial Holdings (Toronto symbol FFH).

Fairfax now holds $500 million of these debentures, which it can convert into BlackBerry common shares at $10.00 a share. If it did, Fairfax would own 17.6% of the total shares outstanding.

The extra cash should help the smartphone maker complete its restructuring, which includes cutting 40% of its workforce and focusing on corporate and government clients. However, the stock will remain volatile until its revenue and earnings improve.

BlackBerry is still a hold, but only for highly aggressive investors.

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One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

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