Mot & Bam>
MOTOROLA INC. (MOT) 81 1/2 +2 1/2. Despite the volatile market conditions, particularly among technology stocks in recent sessions, this provider of integrated communications solutions and embedded electronic solutions has managed to rise above the fray and post steady gains. In fact, since a very underperforming twelve month period beginning in August 1997 thru September 1998, the stock has been on the mend the past eight months, basically doubling in price during this period. And the outlook is for the company to continue to grow its market share as Motorola has managed to revitalize its underperforming units, especially as the markets in Southeast Asia have rebounded from their moribund state. Motorola stock got a boost today when it was announced that the mobile division of Bell Atlantic (BEL 55 7/8 +11/16) would acquire one million wireless phones and accessories from the company. The equipment to be purchased by BEL includes the CDMA digital StarTAC ST7760 phone, the CDMA digital SC3160 phone and the StarTAC Clip-On Organizer so that Bell Atlantic can meet the increasing demand for its high-quality CDMA digital service. This purchase order is a reminder of how well positioned Motorola is in the cell phone market as the company puts its troubled past behind it, especially after the company fell behind with its much planned digital phone launch. The company also experienced troubles at its satellite communications product division when products designed for Iridium World Communications were not delivered on time, eliminating a window of opportunity in obtaining a solid footing in the fast emerging digital phone market. All this appears to be behind the company now however, as Motorola has managed to restructure its operation much faster than anticipated and has resumed its steady expansion phase. With Asia showing signs of life again, Motorola should be able to continue to post steady, predictable profits, something that was lacking through much of 1997 and 1998.
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