"I now believe some bargains are developing among technology stocks," says growth stock expert Mark Skousen.
In his specialized trading service, The Turnaround Alert, he adds, "Motorola (NYSE: MOT) is a fallen tech leader that may even rise in a bear market -- and has a chance to double or triple once the market turns around."
"Technology stocks appear to have bottomed and are moving higher. Motorola, the $8-billion mobile ohone manufacturer, is in the midst of a classic turnaround situation.Ă‚
"It used to be the cell phone technology leader, having developed the world’s first handheld cellular phone and technical standard for high-definition TV. Yet the stock has fallen nearly 70% from its lofty highs of $26 a share two years ago.
"In the fourth quarter, the company lost $3.6 billion, compared to earnings of $100 million in the same quarter a year ago. The company took a major impairment charge on the mobile phone unit's declining value.
"But things could be looking up. Demand for Motorola products is growing in emerging markets, including China.
"And Motorola recently signed an agreement with Google to develop a new smartphone, a high-end product that will run on the Google-backed Android operating system.
"Insiders are so convinced the stock is dirt cheap that recently co-Chief Executive Greg Brown bought 525,000 shares of Motorola (worth $2 million) at about $3.83 each.
"The other co-Chief Executive, Sanjay K. Jha, who was hired last summer to run the company's struggling mobile-devices segment, also bought 200,000 shares at $3.67, an investment of $734,000.
"Even more importantly, activist shareholder Carl Icahn has been buying and now owns more than 140 million shares.
"I'd also add that the co-CEOs recently announced that they took no bonuses in 2008 as they continue to work through the restructuring.Ă‚ We are buying Motorola. For those willing to take a bigger risk, take a look at the July $5 calls."
The Stock Advisors
www.thestockadvisors.com
In his specialized trading service, The Turnaround Alert, he adds, "Motorola (NYSE: MOT) is a fallen tech leader that may even rise in a bear market -- and has a chance to double or triple once the market turns around."
"Technology stocks appear to have bottomed and are moving higher. Motorola, the $8-billion mobile ohone manufacturer, is in the midst of a classic turnaround situation.Ă‚
"It used to be the cell phone technology leader, having developed the world’s first handheld cellular phone and technical standard for high-definition TV. Yet the stock has fallen nearly 70% from its lofty highs of $26 a share two years ago.
"In the fourth quarter, the company lost $3.6 billion, compared to earnings of $100 million in the same quarter a year ago. The company took a major impairment charge on the mobile phone unit's declining value.
"But things could be looking up. Demand for Motorola products is growing in emerging markets, including China.
"And Motorola recently signed an agreement with Google to develop a new smartphone, a high-end product that will run on the Google-backed Android operating system.
"Insiders are so convinced the stock is dirt cheap that recently co-Chief Executive Greg Brown bought 525,000 shares of Motorola (worth $2 million) at about $3.83 each.
"The other co-Chief Executive, Sanjay K. Jha, who was hired last summer to run the company's struggling mobile-devices segment, also bought 200,000 shares at $3.67, an investment of $734,000.
"Even more importantly, activist shareholder Carl Icahn has been buying and now owns more than 140 million shares.
"I'd also add that the co-CEOs recently announced that they took no bonuses in 2008 as they continue to work through the restructuring.Ă‚ We are buying Motorola. For those willing to take a bigger risk, take a look at the July $5 calls."
The Stock Advisors
www.thestockadvisors.com
