Motorola (MOT) Message Board

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Technology Stocks : Motorola (MOT)

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To: PaperChase who wrote (1270)	7/7/1998 8:56:00 PM
From: Clint E.	Read Replies (1) of 3436

It is very obvious that MOT reported an awful quarter with negative sales growth in almost all sectors with the exception LMPS. It is also evident that due to company-specific and industry-wide issues, sales growth in the coming quarters will be difficult to achieve. Furthermore, you are correct in saying that they can(and most probably will as other companies freely do) play many creative accounting games in the coming months with that $1.9B write-off.......However, the fact remains that management is under severe pressure to improve the bottom line and Chris knows how to short-term fix any problem. Even if sales growth stays nil, the projected $750M cost-cutting effort and a conservative $250M/qtr earnings would yield forward EPS of $2.80 & PE of ~20. Additionally, with the company trading at 1.2 times sales it is no wonder that MOT has not sunk as low as many have predicted in the past. The stock is not going anywhere for a while but it won't sink to low 30s either. Clint

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