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Technology Stocks : Motorola (MOT)

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To: Glenn Petersen who wrote (2918)5/23/2007 2:42:42 PM
From: John Koligman   of 3436
 
Thanks for the post Glenn. This sounds very similar to what went on at IBM in the late 1980's/early 1990's, although at IBM it went on for years and on a much larger scale, as the headcount there went from a high of around 400k to just about 200k in a fairly short period of time. The key is how they handle it, at IBM new management was brought in (Gerstner in 1992), and a bet was made NOT to dismantle the firm, but to keep is whole and build up the services/consulting business in a major way. Helped along by a tech boom in the mid/late 1990's, that strategy worked well and IBM stock became a 10 bagger during that time.

Best regards,
John
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