Goodbye Moto - Top Stocks Blog - MSN Money
 
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Goodbye Moto

Posted Nov 20 2007, 02:32 PM by Robert Walberg
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Like the song says, "some say love is a Razr that leaves your soul to bleed." Well, my soul has bled waiting for Motorola's stock to turn around.  I can't wait any longer -- I'm not Job, after all.

Motorola has been screwing up for so long, it even gets it wrong when it gets it right. Last quarter the company delivered another lousy set of sales and earnings numbers, yet it guided fiscal fourth-quarter earnings to a range of 13 to 14 cents a share -- a few pennies above The Street's consensus.  Normally, guiding estimates higher would be perceived as a good thing, and it was at first as the stock edged higher on the news.  However, in offering up hope for the fourth quarter and the upcoming year, CEO Ed Zander might have won himself a new contract. And that's bad news.  

You see one of the reasons I bought Motorola's stock down at its lows was in anticipation of a new management team.  Typically when a struggling company finally ousts its old CEO in favor of someone new and full of promise, the underlying stock tends to rally. Until recently, Zander's ouster was all but certain. But in light of the company's modest progress off a terrible set of numbers, Zander might just hang around.  Let's face it, he did take all the credit for the Razr so there might be a board member or two who thinks he's on the verge of another one-hit wonder. [readmore]

I don't know if the new CEO would be Motorola's own Greg Brown (current President and COO) or an outsider like former Qwest CEO Dick Notebaert and frankly I don't much care -- it's just at the point where anyone but Zander will do.  Isn't there a young Galvin kid somewhere looking to reestablish the family name? 

Without a change at the top, Motorola's stock will be stuck at the bottom.  It was the one big catalyst we needed for the stock to make a run back into the low $20s.  The Razr2 sure as heck isn't the answer to our turnaround prayers. Granted sales have been a little better than expected, but the price is still too high, the functionality is hit -or-miss and the design has lost its cool factor.  And don't even get me started on the Q.  Motorola's answer to the smart phone craze was put to shame by Apple's iPhone and Research-in-Motion's BlackBerry Pearl.  Motorola can't give the phone away -- though it has tried hard, which helps to explain the company's declining margins.

So after waiting and waiting, I wait no more.  Goodbye Moto.

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Comments

 

Motorola had, at one time 100% of Apples processor business, so the analolgy with the iphone is quite prescient. Good Bye MOTO. Seems to be a general trend with large entrenched American companys, its certianly not the Governments fault, it is management (or lack thereof)and irrisponsible Board members, just look at the domestic auto industry, the steel industry, etc.

i bought at 169 :(

It's difficult not to be harsh to this company despite how much much of their organization is devoted to telecommunications, or not, the fact is,  too many of us devoted moto customers has realized over the years that they're unable to keep up, i'm so dissadpointed with my phone, it's embarrassing to even use in public. Maybe it's time they step up or step off.

We support customers that use some of Motorola's other product lines...TV Settops to name one.  ALl we can say is that their support of their customers (the cable companies) leaves us all breathless (from talking to the walls).  In fact we get better response from the walls and appreciate the response better!  How's that saying go...You might find a better product, but you won't pay more!!

I have been in the wireless business for close to 14 years and Motorola has seen its market share decline from 50% to 12% in the US. Most carriers hate their phones but carry their lineup based on past successes. Those days are almost over and many carriers are simply passing on their handsets. Poor quality on low and mid tier models vs. over priced V8's. A complete fall from grace for Motorola.....No longer Hello Moto, but Hello Nokia, LG, Samsung, SonyEricsson and more.

Please just don't let it be Jun Hasegawa...you know the owner of Vertex Standard that they just purchased 80% controlling interest in.  That has been a company on the decline for at least the past 8 years under his leadership.  He'd be aweful.  I vote for the dog down the street!  They need somebody with a bark and some bite!

1/3 of there business (as you say) is 93% of there revenue , land mobile is a very small part, even though they are purchasing Vertex ( Mistake) @ $120 Mill. ( good Deal ) but just to throw it away in the dumpster, Vertex is not there biggest competitor ( what the hell are they thinking ) Never the less, its a small part , Semi conductors another small part ( always wasnt true ,but is now) They should have teamed up w/ fill in the  Blank ______soft

Mot is a turde'.

Zander = fast talk = no walk.

Zander must leave B4 I buy.

Another smart move would be to avoid making someone like Jun Hasegawa, the former owner and CEO of Vertex Standard Co. Ltd.  Motorola just bought an 80% controlling interest in what has been a company on the decline for at least the past 8 - 10 years under his leadership.  I understand that they will keep him as their CEO of VS operations.  The once mighty company is now 80% owned by a company that it has been in a hate relationship with for at least 15 years.  I really don't know where his heart would be.

Do not invest at all in anywhere. Just take your hard-earned cas and go away. Do a CD under FDIC protection. If you've got more than 100,000 (peotection is only upto 100,000) then do what you want.

Investing is stupid. Period.

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