Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Will Cliq Phone Give Motorola a New High?


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

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.

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.

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.
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos