Skeptical investors still don't believe Blackberry (NASDAQ: BBRY ) stock is worth the $9 a share Prem Watsa's Fairfax Financial is offering. They're making a mistake, argues Fool contributor Tim Beyers in the following video.
Look at the size of the inventory writedown. At $934 million, BlackBerry is all but gutting the accounting cost of the failed Z10. The company could move the handset at fire sale prices and still accrue an accounting profit, Tim says.
What's more, Watsa, an experienced investor known to some as Canada's Warren Buffett, could cash in by financing the purchase via cheap debt and then taking a handsome dividend from BlackBerry's $2.6 billion in cash and investments.
He'd do even better at a lower buyout price, certainly, but investors shouldn't presume that further discounts of BlackBerry stock are needed for a deal to get done. Do you agree? Please watch the video to get Tim's full take, and leave a comment to let us know where you stand.
Last man standing
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