right now Motorola shares are fluctuating between 5.30-5.50/share.
I had this stock on my 'watchlist' for a possible entry point at around $6, though I didn't enter any recent limit orders on any stocks to avoid 'catching a falling knife' as the momentum carries all of the world indices downwards.
anyways, my considerations of Motorola:
Carl Icahn, who owns 6.4 percent, and has been pushing hard for change, including the naming of one of his cohorts last spring to the BOD. He naturally is not at all pleased as his investment in this enterprise has dropped in value,having opened his position in March of 2007 when the stock was trading in the high teens. He kept buying more on the way down.
Overall, the fact that Carl believes in a vision for a successful reconstructing of the company and he has called for this company to be divided into pieces, which will likely happen in the next six months.
This outfit is huge with revenues of better than $30 billion. Unfortunately it is shrinking somewhat, which is always a concern as that can indicate a further cut of labour with all of the associated costs. Add in a debtload that needs to be serviced and refinanced, plus the fact that the company is only on the margin of profitability, and one can see why the shares have dropped. Oh yes, and there is that nagging cell phone division, which is bleeding money. Oh, and the economy?![]()
A wild card of sorts is also the management team, recently expanded with Dr. Sanjay K. Jha joining the team. This means there are two co-chief executive officers, often the kind of arrangement that does not work well, even if their lines of responsibility are clearly delineated.
Technology is changing all the time in this field. The competition is fierce. MOT will have to continue to spend lots of money on research and development to keep up and needs another hit like Razr. Will they find it?
Given the long history of this organization, I think it is a real possibility.
If they don't, a small and nominal investment here will not pan out. I'll let you know if I decide to 'jump in' or not... probably not until November, though, as I'm putting all of my resources into the closing of my 1st house.
Quite a contrarian play right now, though. I'd expect to put a target on this share of about $24.



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