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$6.14 -0.58 (-8.63%)
10/6/2008 4:02 PM

Motorola, Inc. (MOT)

CAPS Rating:
**

The Company builds, markets and sells products, services and applications that make simple and seamless connections to people, information and entertainment possible through broadband, embedded systems and wireless networks.

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Avatar bsamim (89.09) Submitted: 3/08/07 7:46 PM : Underperform Start Price: $18.22 MOT Score: 40.41

I don't care what Iccahan or who else owns this stock... this thing is a dog and will continue to be one until there are SERIOUS cost shake ups at the top and a management team that can actually do something right. I mean how can you have a prouct like a razor that everyone and their sister wants just because it matches their nail polish or the color pink and still find a way to screw up your margins with that much penetration and want for your phone not even worrying about the fact that it does not even work half the time!

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Avatar burnmp3s (< 20) Submitted: 5/26/07 5:09 PM

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They used the huge profits from the RAZR to support their push into NOK's teritory (emerging markets). Basically they traded margins for market share, which worked for a few years (from 2004-2006, market share rose from 14% to 22%). The RAZRs are still selling huge numbers, but price cuts have forced very low margins, and MOT hasn't found a high margin replacment for the RAZR. Without the profits from the RAZR to fall back on, MOT couldn't win the price war with NOK in the emerging markets.

This does not mean that MOT is being managed badly. MOT was gaining even before the RAZR, and they outperformed the competition quarter after quarter until Q4 of last year. The push to topple NOK was a gamble, but it was a smart gamble. If you bought MOT stock back in Jan 2004 and sold it in Dec 2006, your investment would have given you a 40% return (mostly from dividends). Over the same period, NOK would have given you only a 5% return, and SPY would have given you a 30% return. Now that the RAZR revenue is dwindling, they need a new game plan, and they are in the process of changing the business to focus on higher margins instead of market share gains.

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Avatar smr2112 (83.97) Submitted: 7/12/07 9:57 AM

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totally agreed. Their days as a leading cell phone provider are numbered.
The asian companies are eating their dirt....

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