The Ambitious Trader: Stocks, Trading, Investing..My Ambitions as a Trader and Investor

This is a one way ticket that takes you on a wonderful journey into the vast world that is the stock market through my eyes, my point of view.

Thursday, January 12, 2006

Why I believe Motorola (MOT) is a good buy...

Hey folks,

I like risk. As a matter of fact, I get a thrill out of playing risky stocks. Because of this, many people think I'm nuts (especially my broker and accountant). Still, I have been lucky on several risky plays. Because of this, I like to cash out and profit and move some money into more "stable" stocks.

One of my favorite stable stocks and one that I believe is undervalued, is Motorola Inc (MOT). Trading at 23.96 with a current P/E of just over 14, MOT is not expensive at all. So whats going on? How come people are not buying it like hot cakes? Why is Motorola's stock moneyflow on the negative side? Who knows, and who cares. From what I see, many investors do not realize the growth potential of MOT. They don't believe it is a growth story any more.

Look at what happened to EBAY, Amazon, WMT, SBUX. Once you and your product have oversaturated its market niche, where do you go from there? Why do you think Hanson Natural (HANS) has done so handsomly? Because its got a catchy name? Yeah right! It's because it has products that consumers want (I don't like them, but others do). It has accelerating sales from its new and innovative products. Thats growth right there. How can companies like WMT and SBUX grow even more when they have about a 1000 or more stores per state? They can't. Unless they establish a reliable and competitive franchise in foreign countries. That's what McDonald's (MCD) is doing overseas in Asian countries. It has started producing a new food palatte for the Asian McD franchises. Ever hear of a McRice burger? Menu items that use this staple food of Asian cultures are selling like hot cakes. This is good for MCD's revenue and growth. This is why MCD's stock is not looking too shabby lately.

McDonald's Corp (MCD - NYSE) 3 month chart- Current Price: $34.79
















So what's MOT catalyst for increased growth and revenue? How about its innovative and stylish and don't forget to mention, HOT Razr phone? Or how about its partnership with AAPL with the ROKR phone? Earnings are to be released January 19, so we will soon see what happens to MOT.

Motorola Inc (MOT - NYSE) 3 month chart- Current Price: $23.86
















I am thinking about buying some. Since it fits into my category of a "sane" stock, I can pour more money into it without having to worry about getting my a$$ handed to me, too much. For now I will do some research since the market closed. I will also analyze MOT and decide if I should buy or not. Later!

2 Comments:

At 8:55 PM , Blogger Matthew Theal said...

Nick,
I have owned MOT for quite sometime now, since about 16 (I think). I couldnt agree more this is a solid buy and it will be one of my postions I add to during this sell off.
Matt

 
At 2:45 AM , Blogger Nick M. said...

Hey whats up Matt?

Nice! You caught it right there at the bottom, great job! Well I am glad you agree with me on MOT. I am also thinking of starting a position in it as well! Good luck on MOT! I believe that Jan. 19 should be a great day for the stock! We'll soon see!

 

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