Following the announcement earlier this week of more job cuts, BlackBerry (BBRY) chief executive officer John Chen revealed that the company's turnaround plan is taking longer than expected. Chen told Reuters on Thursday that he is pretty satisfied with the progress of the turnaround, and that he is still comfortable with a $500 million software revenue target for this fiscal year. However, instead of the turnaround being completed within about six months, Chen said he now believes it will take 12 to 18 months for investors to feel positive effects from it. Morningstar (MORN) analyst Brian Colello says he sees no chance that BlackBerry will build a comparable ecosystem to Apple iOS or Google's Android anytime soon or ever reemerge as a leading smartphone maker. In hardware, Colello said he continues to foresee significant market-share losses as consumers gravitate toward other ecosystems and he is concerned that BlackBerry may be surpassed by rivals at some of its most important clients. He also said he remains highly skeptical that the firm will be able to adequately monetize some of its software. Until the company's turnaround is complete, Colello said risk remains that BlackBerry will continue to rack up operating losses.
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.