Fairfax reported a $500M+ loss today in their earnings. They are about to buy a losing company which will further impact their bottom line going forward. Does Fairfax sound like a company you want to put your hard earned money into? I don't think so.
We still have yet to receive any reports on the financing for the Blackberry deal. We know that Fairfax asked two banks to help them finance this $4.7B acquisition of BlackBerry. So it has all come down to these next few days. Deal or no deal?
I definitely find it extremely suspicious that BlackBerry sold off hard in the last two hours of the market today. We have seen severe sell offs in the S&P 500 and the NASDAQ only to find BlackBerry hold its own price. Today, it was different - this was deliberate selling. Obviously we can never truly find out who - at least not right away anyway. In my years as a trader, this wasn't exactly a big institutional sale but it is remotely possible. This was more like a bunch of individuals - insiders and the like selling judging from the volume surge in the selling.
Regardless of who sold, this is an ominous sign. What's more interesting is the fact that this was an early warning to the earnings report of Fairfax. Once again, someone knew something before it happened. Don't hold your breath for the authorities to investigate. It's not going to happen.
Whatever your feelings may be, good luck if you are in BlackBerry. We will find out on Monday if we get a deal or not. I strongly think nothing is going to happen.