Good Time To Buy More

Article Excerpt

MOTOROLA INC. $18 (New York symbol MOT; Conservative Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 2.3 billion; Market cap: $41.4 billion; WSSF Rating: Above average) is the world’s second-largest maker of mobile phones, after Nokia. This business accounts for about 60% of its revenue. It also makes equipment for telecommunication networks, and consumer products such as modems and personal video recorders. The stock got as high as $26 in October 2006, but has moved down due to the growing popularity of entry-level mobile phones, particularly in Europe and Asia. These models generate less profit for Motorola than its more expensive phones with built-in cameras, music players and other features. Slowing sales of these advanced models has expanded Motorola’s inventories. This has forced the company to cut prices to stimulate sales. The upcoming launch of Apple’s new iPhone could put more pressure on Motorola’s market share. However, since the iPhone is only available from AT&T, it’s likely that other cellular providers will offer…