This tech underdog is going higher: Trader
BlackBerry shares been stuck in a tight trading range over the past year, but rather than take it as a sign to stay away, one trader thinks the stock is poised to break out.
"BlackBerry is up about 18 percent in the past year and I think it has more room to run," said "Fast Money" trader Brian Kelly on a "Behind the Trade" segment.
He said the stock is undervalued and points to several catalysts other than earnings that could move it, including both the possibility of a takeover and the company's growing presence in automobiles.
"BlackBerry QNX is the middleware that allows both Google and Apple's smartcar apps to run," said Kelly. "It's essential to the new push to connect cars to the Internet yet BlackBerry does not get enough credit for it, but I think that could change."
BlackBerry has long been the subject of takeover speculation, which Kelly notes has buoyed the stock. But he also cautions that if a deal doesn't materialize soon, it may signal deeper problems at the company.
"It has been long rumored that BlackBerry was a takeover candidate and it would make a lot of sense. At this point it's likely that several buyers have combed through the company and it worries me that not one has placed a bid."
Kelly says to buy the stock below $10 and look for the stock to go as high as $15. He would sell if the stock falls to $8.
Follow him on Twitter @BKBrianKelly
Disclosure: Brian Kelly is long shares of Blackberry.