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The Stock Masters submit: In June, Motorola (MOT), the world's second largest cellular phone maker, released the Moto Q phone to compete with Research in Motion's (RIMM) blackberry and Palm's (PALM) Treo smart phone.

moto q
The Moto Q Smartphone

As of July 06, Motorola has shipped 50 million of its RAZR phones and is gaining strong market acceptance. They plan to sell 5 million Moto Q phones by February 2007. The RAZR has become a key brand name for Motorola, and chances are that the Moto Q will be as successful if not more so than the RAZR.

Outlook: Motorola has beat estimates in 3 of the 4 past earnings releases. The company gained market share from Nokia (NOK) in the first quarter of 06. Motorola's market share rose to 20.3 percent from 17.8 percent in the fourth quarter, while Nokia's share fell to 34 percent from 35 percent.

Q2 06 profit rose 47 percent as demand surged for new phones. Net income from continuing operations gained to $1.35 billion, or 54 cents a share, from $933 million, or 37 cents, a year earlier (this according to a statement distributed by PR Newswire). Sales advanced 29 percent to $10.9 billion, beating the $10.1 billion estimate of Lehman Brothers analyst, Tim Luke.

Summary: Since 2003, Motorola has turned itself around from a failing company to one that rivals the innovations of Apple (AAPL) thanks to CTO Padmasree Warrior.

I think leaving MOT out of your portfolio could be a huge mistake. Look to buy around $22.50 a share and hold this stock until they have the opportunity to further infiltrate the Overseas Markets. MOT has the possibility to gain substantial market share, similar to how Tony Montana took down the competition in Scarface.

mot

MOT 1-yr chart:

MOT 1-yr chart

Article written by Eric Cheshier.

Source: Motorola Has Really Turned Itself Around