Motorola

Busy Keeping Up with Stock Market Rivals!

The stock market reputation of Motorola may be more impressive than the company’s preparedness to take on its rivals. The history of this company is more glorious than its product range today. The number of technologies in which Motorola is involved could fill a directory, but of how much use are generics when it comes to stock market interests.

Motorola simply relies on its established goodwill to market products that sweat shops in countries such as Taiwan and China can produce in ship loads, and at massive discounts. How long will customers pay hefty premiums for marginal benefits dreamt up by fanciful advertising people?

Motorola started business in 1928, and the stock market enjoyed crests of the company’s innovative approaches during the post World War II years of the last century. The company has transformed wireless communications and delivered crates of value to all sections of stakeholders for decades. However, electronic circuits are sitting ducks for copiers, and the company may also be to blame for slowing down on the business end of its R&D. Fortunately, marketing strengths and sound value systems, assiduously built over the years, have kept the stock market happy, even as competitors have steadily chipped away at Motorola technological edge. However, the question remains as to whether Motorola can maintain market shares and margins well in to the future.

Motorola Stock Market Value from Technological Leadership Stands Diluted!

The stock market may not be ready for such skepticism because Motorola has a superb 29% sales growth in the second quarter of 2006. The $35 billion plus sales will not disappear tomorrow. Market growths in China and India have customers hungry for 2-way handsets and for smart cell telephone models as well. Shipments of all major product lines have recorded handsome growths, and the company has gained share in competitive lines such as hand sets. The global telecommunications boom should carry the company forward in the short-term. Perfect for exit, some stock market investors may believe! The late August 2006 share price has been around $22.74 against a 52-week high of $24.99.

Bookmark/Search this post with: