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Technology Stocks : Motorola (MOT) -- Ignore unavailable to you. Want to Upgrade?


To: Li Cai who wrote (1182)6/7/1998 8:46:00 PM
From: Investor2  Read Replies (3) | Respond to of 3436
 
Re: "What happens to MOT? Why it keeps dropping?"

The main reason is this: There are more people selling MOT shares than there are buyers of the shares. The following are reasons why so many people are selling:

1. MOT indicated that they are going to lose money this quarter. They also said they would take a $1.95 billion write off.

2. The Asian crisis is hurting their business.

3. Several other major companies introduced products that have been selling better than MOT's products.

4. MOT seems to have gone through a difficult period adapting to the newer digital era.

5. Technology stocks in general have been taking quite a beating, especially those related to semiconductors.

6. MOT's earnings growth has slowed over the past several years.

I'm sure there are many more reasons why people have been selling. The real question, in my mind, is this: Are all of the above negatives already factored into MOT's price? Although I don't know the answer, I'd guess that many of the negatives are already reflected in the current stock price.

I do know one thing for certain: MOT is a much better deal now ($50 per share) than it was 11 months ago, when it was selling for $90.

Best wishes,

I2