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Will Cliq Phone Give Motorola a New High?

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Company's been on a run, but earnings expectations aren't sounding as good.

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Even though I was feeling under the weather the last few days, it turned out to be an awesome weekend. I hit the beach for some shell hunting with the kids, jammed an unusually large number of quarters into the machines at the boardwalk arcade, and loaded up on soft-serve ice cream. Life doesn't get much better than that.

Asian stocks took a hit overnight. The Hang Seng and the Nikkei were off 1.08% and 2.32%, respectively. European stocks were lower early this morning, too. And here in the US, we're currently trading…

Here's what I'm focused on this morning:

Motorola (MOT):
Well, hold the phone. Looks like it got a nice little bounce on Friday because of excitement over the potential for its Cliq phone.

But can the momentum keep up? Is a new high in the cards?

Some thoughts:

1. It wasn't just Friday; the stock has been on a bit of a run over the last month or so. And I think its rally is for real and folks are paying attention in earnest.

2. The Cliq chatter could spill over into this week and we could indeed see a new high. If I'm right, it could cause even more talk and get the company more press.

3.
One issue: I view this as a news/momentum play because frankly, the earnings expectations for this year and next hardly get my motor running.

FedEx
(FDX):
It looks like the package-delivery giant expects to send in a pretty first quarter. In a release on Friday, it indicated it's looking for $0.58 in its first quarter -- not bad, given the estimate I'm seeing is for $0.49. And for the second quarter, it's looking for $0.65 to $0.95, which is decent because the Street is at $0.74.

Some thoughts:

1. It's nice to see the company set the bar where it did. And I sense that estimates for this year are going to be on the way up as a result.

2. But I wonder if it can keep on delivering positive surprises. It trades now at about 19.8 times next year's estimate (which is $3.91). That's not cheap. And to boot, the stock had a big run on Friday, climbing almost five points.

3. I like the company, and believe it has excellent potential down the line. But it's a bit ahead of itself, and for that reason, I'd rather wait for a pullback before picking up this package.
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No positions in stocks mentioned.

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