Motorola (NYSE: MOT) pre-announced a second quarter shortfall and also indicated that the rest of 2007 will be difficult and non-profitable. The stock will more than likely be dead money for the next six to nine months as this company has yet to find its footing.

I wrote back on June 26th that Motorola would probably miss this quarter and perhaps the year. It has come true. Motorola is a company that is in trouble as it cannot make an operating profit on almost $9 billion of quarterly revenues. Motorola is attacking the European markets with mid-level product that is constantly under pricing pressures. The Motorola approach in Asia and China has been to penetrate the low-end of the cellular market which is also contending with evaporating margins.

Motorola had success with the Razr line-up of phones but has yet to come up with a killer-replacement phone and the Razr cycle has worn out its welcome.CEO Ed Zander, rightfully, is under huge pressure to perform as this once bellwether company is facing not only a tough 2007 but a challenging 2008. With Apple's (NASDAQ: AAPL) iPhone capturing market share and headlines, Motorola is hard pressed to maintain its competitive positioning in the United States.

Motorola's stock closed at $17 yesterday and I see little to any near term prospects of it lifting higher. Motorola stock may start to be interesting at the $14 level, but not until then.

Georges Yared is the Chief Investment Strategist of Yared Investment Research.