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The Bear Case for BlackBerry: Niles

Tuesday, 5 Feb 2013 | 5:40 PM ET
The Bear Case for BlackBerry: Dan Niles
When looking at BlackBerry, "I don't see how you can't be a bear longer-term," Dan Niles of Alpha One Capital Partners says.

When looking at BlackBerry, the headwinds are plentiful and significant, Dan Niles of Alpha One Capital Partners said Tuesday.

"I don't see how you can't be a bear longer-term," he said on CNBC's "Fast Money."

"You don't buy a phone to make phone calls anymore," he added. "You buy them to run applications, and if you're a software developer, you build applications for where the market is. The most profitable market is for iPhone, so it's on Apple. The next one is on Android."

Even the No. 3 spot behind Apple and Google mobile platforms has been claimed, Niles said.

"If you're even thinking, 'Maybe I'll spend some time going to a third,' just because of the amount money Microsoft has to throw at it, you may put a little bit of effort into that," he said. "And that's really the problem with RIM is they don't have the big checkbook to just pay people to port it. That's the issue I have with it longer-term."

Niles added that with enterprise customers allowing employees to use Apple's iPhone with corporate e-mail servers makes it even tougher for BlackBerry, formerly Research In Motion.

In the broader technology sector, Niles said that there were "interesting pockets of growth" even amid –stock price declines.

"To some extent, you're just working off some of the excess optimism that existed last year, while a lot of technology companies weren't making numbers," he said, adding that investors would do well to avoid PC-related areas "because I think they're just going to be under secular pressure."

Trader disclosure: On Feb. 5, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long F; Tim Seymour is long GM; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Dan Nathan is long FB MARCH 34 CALLS; Dan Nathan is long SPY FEB 149 PUTS; Dan Nathan is long SDS.

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