Seeking Alpha
What is your profession? ×
Profile|
( followers)
Motorola (MOT) admitted this afternoon that it is facing significant problems with its handset division, has replaced some execs, and lowered revenue guidance for the coming quarter.

We've discussed the firm's problems in the past, and the company won't find a quick fix through the potential acquisition of Palm.  I would continue avoiding the stock.

Funny thing - I recently purchased a RAZR V3xx from the Motorola store, and it functions great - excellent reception, impressive battery life, and real fast data speeds over Cingular/ATT's (NYSE:T) 3G/Edge network. I would easily recommend it to others.  Unfortunately, few of my friends or relatives will spend more than $50 on a cell phone. 

Even with $10B in cash on the balance sheet, until MOT can find a way to stop discounting its products, de-program the public from expecting nearly free phones, better manage its carrier relationships, and thus bolster operating margins, its shares will not recover.   I don't know when that may be, but if I knew the answer, I'd say not soon.