Motorola Solutions (MSI, Financial) saw a rebound in orders back to record levels in its North American Land Mobile Radio (LMR) business – where it enjoys a virtual monopoly – along with double -digit operating earnings growth in its software and services segment. COVID-19 posed some temporary challenges to Motorola's selling organization; however, public service demand for more sophisticated and flexible emergency video and communications solutions stayed strong. The Company is capable of generating double-digit top-line growth as new federal spending should help expand state and local communication budgets. Despite a considerably better funding backdrop for Motorola's largest customers, the stock trades at a multiple not too different compared to when things were not nearly as optimistic. As a result, Motorola continues to be a top holding (number 3) in our portfolio.
From David Rolfe (Trades, Portfolio)'s Wedgewood Funds first-quarter 2021 shareholder letter.
