Thinking of buying Motorola (MOT). Think again.

A $10 stock might look cheap but with so much competition in the handset business, it's hard for Motorola to gain any ground.

"About a year ago, Carl Icahn bought 3.6% of the company's stock, either directly or through long-term options, for about $18.36 per share, or almost twice its current price. He was unsuccessful in securing a board seat last April in his proxy battle against then incumbent management. He could have gotten out then with not much of a loss. The market gods were trying to tell him something, but he failed to hear the message."-Stock Article Link

"..the Koreans are grabbing market share in both the U.S. and emerging markets..Last year, Samsung Electronics passed Motolola to become the world's No. 2 player in the cell phone industry.."-Stock Article Link

Yahoo stock rallies after departure of CEO Terry Semel

Yahoo's Terry Semel Steps Down As CEO

What other stock can spike up if the CEO resigns? Ed Zander of Motorola (MOT) and Charles Prince of Citigroup (C) come to mind...

Bye Bye Semel...

Motorola to Cut 4,000 More Jobs!

"The latest round of cuts means the world's No. 2 handset maker has announced plans to eliminate more than 10 percent of its work force since the start of 2007, when it became clear that two years of strong momentum behind the popular Razr phone had collapsed....

The company already is in the process of eliminating 3,500 jobs as part of a two-year cost-cutting plan to save $400 million." -Stock Article Link

With stock buys from billionaire gurus Carl Icahn and Eddie Lampert, MOT is a buy!

Eddie Lampert owns Motorola and Clear Channel stock

Billionaire Eddie Lampert is making headlines with his 15 million shares of Citigroup (C). At $54, you still get a nice 3.9% dividend. But Eddie has also accumulated 881,100 share in Clear Channel(CCU) and 925,000 in Motorola (MOT).

Eddie Lampert portfolio

"He has also been labeled the next Warren Buffett, and his investment vehicle, Sears Holdings

he has amassed a 29% average annual return consistently since he founded ESL Investments in 1988....

Lampert is a keen student of the Oracle of Omaha. Like Buffett, he has an "aggressive conservative" style....

When Kmart was on the verge of bankruptcy, he invested heavily in Kmart bonds, directing its resurrection.

After Kmart become public, its shares surged from $15 to $109...."- Full Article Link -Trade Like Hedge Fund Honcho Eddie Lampert

Motorola's latest phones

I wasn't as bullish with MOT since Carl Icahn didn't get on the board. But now that George Soros bought some shares, I'm feeling a little bit more confident in the stock.

View Slide Show of Motorola's latest phones

Carl Icahn was not elected to Motorola Inc.'s board

Billionaire financier Carl Icahn was not elected to Motorola Inc.'s board of directors, according to preliminary results released Monday night by the cell phone maker. Final results from Monday evening's shareholder vote could takes weeks to tabulate, the company said in a statement.

Motorola Says Icahn Not Elected to Board

If Carl doesn't get on, I may sell my shares.

Carl Icahn's lastest new message for MOT.

In a letter to Motorola's executive directors Friday, Carl Icahn changed his message a bit, saying stock buybacks and dividends should take a back seat to fixing operational problems.

"My experience tells me that Motorola's problems reflect not only operational failures but are also symptoms of a passive and reactive board....
My experience tells me that Motorola's problems reflect not only operational failures but are also symptoms of a passive and reactive board.....
I am willing to expend the time, effort and money necessary to seek election through this proxy contest so that all of us will have a shareholder voice on the Motorola board...
an active, constructive Board member and to help guide Motorola through its current difficulties so that it can achieve its full potential.", Icahn says in his letter. - Stock Article

Icahn increases Motorola Stake from 2.7 to 2.9%

Icahn ups Motorola stake to 2.9 pct from 2.7 pct

Icahn Affiliates Raise Motorola Stake

That's $1.2 billion+ worth of stock, one of Icahn's biggest position.

Carl Icahn is money in the bank! Buy Motorola (MOT)

Carl Icahn is a well known investor and businessman that has amassed a great fortune from buying and selling major companies. Some have labeled Icahn a "corporate raider" or "imperial shareholder" that is only out to tear companies apart for short term profits, but he refers to himself as a "shareholder activist" that is keeping managers accountable. Throughout the 1980s Icahn profited greatly from major companies like the airline TWA (Trans World Airlines), USX (United States Steel Corporation), and Texaco oil. According to Forbes, his net worth stands at $8.7 billion

According to Yahoo! Insider Trades

AMER REAL ESTATE LP : Reported 30-Jun-05 (around $28), 55 million shares, now $116.
(ACP)

IMCLONE SYSTEMS : Reported 14-Sep-06 (around $30), 11 million shares, now $42 .
(IMCL)

LEAR CORP. : Reported 7-Oct-06 (around $21), 12 million shares, now $37.
(LEA)

Carl Icahn's Current Stock Portfolio

Carl Icahn finds his inner geek - Article

Why Icahn May Hurt Motorola - Article

I am kicking myself when I had the chance to buy IMCL at $28.....I'm not going to miss the opportunity again now with Motorola (MOT). Carl Icahn has acquired 2.7% stake and hopes to get the board to use up all it's cash for share repurchases which should boost it's stock price.

Motorola currently trades close to it's 52 week low at $17.59. (You're buying it below Icahn's price) but cash per share of MOT is $6.54! Has only a 1% short position. Motorola is a recognizable global brand but in a business with lots of competitors. However at this price level, and following the coattails of an investing guru, I'll take my chances. This a speculative play with a short term trade time horizon of 6 months to year.

It's the long Easter Weekend, so there's plenty of time for you to do some more research. Remember, don't buy all at once and buy in wide scales...

5 stocks with the most cash

Surprising Motorola (MOT) has about 15 billion in cash alone ($18 stock with $6 in cash).
Aetna is a $46 with $28 in cash.

5 stocks with the most cash -Article Link

Other ones that the article did not mention is Rackable Systems (RACK) and Hurray! Holdings (HRAY)....$6.37 stock with $3.40 in cash.

Carl Icahn accumulates 1.4% of Motorola

Remember what happened with billionaire Carl Icahn and Time Warner? Not much as for breaking up the company such as the AOL unit. But with alot of publicity and forcing management to focus more on shareholder value, the stock, TWX, is up from $16 to $21. Can Carl Icahn have the same effect with his investment in Motorola?

Icahn Sets His Sights on Motorola