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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Clint E. who wrote (19687)	2/4/1999 11:18:00 PM
From: Jurgen	Respond to of 70420

I'll be in Boca Raton Feb 18/19th, that should be good for a 40 point sell-off - maybe even more if it rains.. My favorite short at the NB securities technology conference: Motorola (MOT) Motorola's presentation by Fred Kuznik was one of the most entertaining of the week. Halfway through, while describing how valuable text pagers can be, he used the example of being at a conference, when the pager gives you an important message. You can then wipe out your wireless text entry response system, type in a reply, and answer "the call of the master," all the while ignoring whatever the presenter has to say. This kind of affable self deprecation not only brings laughter, it drives home a critical message not lost on institutional investors: the wireless revolution is far from over. After all, cellular phones have been ringing during the middle of presentations all week. To that end, the Motorola presentation focused on a single issue: a complete product suite for the "Personal Network Vision." Goal is to provide an end-user product for every element of wireless digital communications in everyday use: business and personal use, all integrated with one another, all with ability to synchronize data Example: 99 will see introduction of combination digital phone/PDA device, has LCD screen for data entry/retrieval, synchronize data with your computer easily. Kind of a cross between Palm Pilot and digital phone. -New line of digital phones: 2.7 ounces with 500 hours standby time, very small. -Expect 100% growth in wireless digital products -Have reorganized company, all analog engineers now part of digital engineering group, paging engineering group now part of cellular engineering group -Why did we buy Broadcast.com and Starfish.com? To enable the "Personal Network Vision" These companies provide the technology to integrate the PDA products and coming internet based communications products with digital portable communications device -Gave a visionary view of following application: in your car, you download "cash" from a remote ATM onto your smart card by inserting card into your portable wireless communication device. Briefing.com commentary: Motorola's vision is far beyond just building cellular and digital phones. Although present in many different product lines, consumer pagers, digital phones for business, etc., the vision is that eventually all of these technologies will converge. Motorola, by having a consumer or business product at every usage point in the wireless portable network currently, will have the advantage in integrating all of the technologies into a single device. This type of message, a strategic vision, is precisely the type of information most investors look for at a conference like this. Although many also like to hear things like "we will add 3 points to the operating income over 2 years" for a large company like Motorola, maintaining strong growth is the issue. How does a huge company get a revenue growth curve that will be rewarded in the market? The "all devices will converge" message is a powerful one, and the tactic of providing a point product at every level of wireless communications now gives an advantage to capturing that convergence in the future. This is why Motorola sells products like the TalkAbout family two-way radios, and pagers in multiple colors. Overall, a very positive message for investors who are want to know what will turn Motorola around. MOT reached a high of $90 a year ago, but traded at half that earlier in 98, and is now around $70 a share. I like the part about reorganization: All analog engineers are now part of the digital engineering group and the paging engineering group is part of cellular engineering group - boy, that's what we've been waiting for !