Motorola Where is The Value?

Motorola (MOT),which clearly has been struggling, wakes up today to hear MKM Partners a trading and research driven firm has initiated coverage with a sell recommendation. They have posted a target of $5. The shares are currently approximately $7.20 Nasty but then again Motorola has become everyone’s whipping boy. What the analyst Tero Kuittinen failed to mention is where where these guys three years ago when Motorola was trading north of $25 @ share. The current 52 week range is $2.98 to $9.74.

The analyst does point out that the consumer will be stingy and smart phone sales will not be as good as the hype would have you expect. Fair enough. But when we are scrapping the bottom of the coffin a sell recommendation is problematic. What if Motorola’s strategic value is recognized and a take over offer comes in. Or just go Chapter 11, blow out your problems and reboot. Strict trading approach just may not identify value.