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The Money Man Behind Rick Santorum: Who Is Foster S. Friess?Motorola (NYSE: MOT) provides
technologies, products, and services for mobile and home communications. The company's Mobile Devices division offers wireless handsets, with integrated software and accessories. The Home and Networks Mobility segment makes set-top boxes, digital video recorders, cable modems, and network equipment used in video broadcasting, computer telephony, and high-definition television. The Enterprise Mobility unit provides radio, voice and data communication products for a range of enterprise markets. Nokia (NYSE: NOK) and Ericsson (NASDAQ: ERIC) are major competitors.
The firm pleased investors late last month, when it reported Q2 EPS of two cents and revenues of $8.08 billion. Analysts had been expecting a loss of three cents and $7.69 billion. The company had positive operating cash flow of $204 million and ended the quarter with a net cash position of $3.6 billion and a total cash position of $7.8 billion. Management also guided Q3 EPS to 0-2 cents (one cent consensus) and FY08 EPS to 6-8 cents (one cent consensus).
The shares
popped on the news and have since moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with four "strong buys", three "buys", nineteen "holds" and five "underperforms". The MOT Price to Sales ratio (0.59), Price to Book ratio (1.31) and EPS Growth rate (110.63%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 72% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $6.62 and $19.68. A stop-loss of $8.30 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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