Mot Tanking Down In Premarket On Warning

T

thehangingman

http://stockcharts.com/h-sc/ui?s=MOT&p=D&b=1&g=0&id=p66015825211

The chart says it all. This might be a good swing play. 18.5 is the resistance. If it keeps there, then its an outstanding buy and great swing play.

HOWEVER, if it doesnt respect the 18.5 line today then it will probably go to or near the next resistance line at 14.

Looking at the fundamentals, the company is not in this bad of shape. When it was at 20, it was trading at roughly a P/E of 12. Trading at a P/E of 10 would put this company along with your favorite homebuilders and oil stocks. The company really isnt this bad.

I would see if it respects the 18.5 line today and then buy accordingly in segments. The TNX is the key to this stock because it has billions in debt. Higher interest rates will errode the balance sheet.
 
I recommended MOT to my brother just yesterday for his "retirement" account. Good long term hold but short term, I'm very afraid of the big bad bear although I don't see the sky falling... yet.
 
From a consumer's standpoint, its not that great of a company. Every Motorola phone I have ever had has been junk. Nokia offers a far better product.

I once had a Nokia phone that was seemingly indestructable. One time I was mad and threw it with full force at a wall. It came apart in 3 pieces. When I placed it back together, it worked just fine with a few marks.

Now my company phone, which is a motorola, I had casually dropped on the floor and the display cracked. Plus it seems bulkier then it needs to be. My friend's Sony/Ericson takes much better pictures.

Then there is the entire problem with their two-way radio line. Police and Firemen have lots of complaints against the company and there were issues during 9/11 in which the motorola equipment failed to perform.

From a chartists point of view, I think its a sound buy as long as it holds at 18.5. It will fall much further if it doesnt respect the 18.5 price point.

I would not hold the stock forever though. Just for a swing play and in strict accordance to the chart. It ran to 26 last time and its possible this could happen again.
 
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