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Motorola wants to focus on cells, sell off the rest: Why spinoff plan is a bad call

Filed under: Company News, Motorola

motorola-focus-on-cells-sell-off-the-rest-spinoff-bad-ideaMotorola (MOT), the once-soaring cell phone maker now attempting a comeback, is looking to offload its television set-top box and business equipment unit for $4.5 billion, according to The Wall Street Journal. The plan's proponents argue it would leave a more streamlined business focusing on the white-hot mobile space, where the company has garnered good reviews for its new Droid phone.

But Jim Kelleher, an analyst with Argus Research, says the spinoff would be a mistake for Motorola. The company -- and its shareholders -- would be better served by leaving the company intact for now, he says. "If the company splits up, the parts would be exposed to cyclical tornadoes," Kelleher told DailyFinance. "Also, they would lose a lot of shared best practices, shared intellectual property and shared research and development. All these things would be isolated."

These 10 big-name stocks have doubled this year. Can they keep it up?

Filed under: Company News, Investing, Expedia, Ford Motor Co., Motorola, Nordstrom, salesforce.com, Apple, Amazon.com, Inc., Whole Foods, Office Depot, Tenet Healthcare

The S&P 500 index is so far having a fine year, up a bit more than 20%. But several big-company stocks in the index have doubled, or better, over that time. Among the best-performers are some of Amerca's most well-known companies.

Here's a look at 10 of those and their prospects of advancing further -- or sliding back into the large pack of equities that have had only modest advances during the current bull market (all prices are as of the close on Nov. 9).

First Droid, then AdMob: Google goes for Apple's jugular in mobile business

Filed under: Company News, Technology, Google , Microsoft, Motorola, Apple, AT&T, Verizon, Palm

The $750 million acquisition of mobile advertising network AdMob by search giant Google (GOOG) signals a new stage of the battle for the soul of the mobile Internet between Google and its arch-rival Apple (AAPL). The acquisition gives Google the strongest player in the fast-growing market for putting advertisements on smartphones. And it's the latest brawny move by Google in an unspoken war that has broken into pitched battle in the past two weeks.

Verizon Droid unleashed on NYC: 'We're gonna need more phones'

Filed under: Company News, Technology, Google , Motorola, Apple, Verizon

After weeks of build-up, Verizon Communications's (VZ) Verizon Wireless unleashed its new Google (GOOG)-powered Droid smartphone on Friday, and New York City retailers were selling out of the device -- billed as the first legitimate challenger to Apple's (AAPL) iPhone's first legitimate challenger -- on the first day.

"We're gonna need more phones," Amanda Leavelle, a Verizon Wireless store manager in Manhattan's SoHo neighborhood, said around 2 p.m. "I just checked, and our inventory is running low, so I've got to call for some more."

Droid takes Manhattan: 100-plus lined up at midnight for new Motorola phone

Filed under: Company News, Motorola, Sprint Nextel Corp., Apple, Verizon, Palm

droid-takes-manhattan-100-plus-lined-up-at-midnight-for-new-motorola-phoneSome pieces of news are worth mentioning only in passing because they are interesting, but may not mean a thing. CNET says that over 100 people lined up at midnight to be early buyers of the new Motorola (MOT) Droid handset at a Verizon (VZ) store in Manhattan. The store in Herald Square had 500 phones in stock to meet the early demand.

The Droid is Motorola's answer to the Apple (AAPL) iPhone and Palm (PALM) Pre. Wall Street is hopeful that the Droid will lift the handset maker's fortunes, and has driven Motorola stock up over 30 percent in three months. After three years of lean sales since Motorola's flagship RAZR phone went out of style, the company may have a hit again. But one day's sales do not a trend make.

Even a hit Droid phone won't fix Verizon's woes

Filed under: Company News, Technology, Google , Motorola, Research In Motion, Apple, AT&T, Verizon

As the hype mounts for Verizon (VZ)'s launch of its Google (GOOG) Android-powered phone, investors have started anticipating what a hit could mean for Google's and Verizon's bottom lines.

Shares of BlackBerry maker Research in Motion (RIMM) got hammered yesterday after analysts said that the Droid might become a major competitor in the business market, where Apple (AAPL)'s iPhone has largely failed to gain ground. And Droid handset-maker Motorola (MOT) has seen its shares surge, partially around anticipation that the operating system may give it a hit phone after a long drought.

Top Picks: Seven big-name stocks to avoid

Filed under: Technology, Investing, Media, Google , Motorola, Research In Motion, Sears Holdings Corp., Sony, Berkshire Hathaway, Apple, Wal-Mart Stores, Target Corp., Palm

Sometimes bad stocks happen to good companies.

That's not a moral judgment; it's merely a reminder that shares and the corporations that issue them are not the same thing. After all, the best company in the world isn't worth buying into if its stock is too expensive -- and likely to fall. The reverse also holds true: Just because a company's business is in the dumps doesn't mean its shares aren't oversold -- and poised for a pop.

That's why a stock that fetches $500 can be said to be "cheap," while a $5 stock can be said to be "expensive." It's not the face-value of equities that investors need to focus on -- it's the valuation and, of course, the fundamentals.

Google and Facebook: How two giants can transform the landscape in a day

Filed under: Company News, Technology, Media, Google , Motorola, Apple, AT&T, Facebook

It sure was fitting that Google (GOOG) killed an entire product segment on Oct. 28, just a day before the 80th anniversary of the 1929 stock market crash. And appropriately enough, on Wednesday the tech-heavy NASDAQ tumbled mightily. Contributing to that fall was the pummeling of GPS makers Garmin (GRMN) and TomTom (TMOAF), whose shares plunged 16% and 21%, respectively. TomTom shares kept falling the next day, dropping by 11% more.

That's because search giant Google unveiled what appears to be a revolutionary GPS guidance unit for smart phones running Google's Android operating system. Collectively, those two GPS companies lost more than $2 billion in market cap. Even shares of iPhone maker Apple (AAPL) fell by a startling 5%, more than retracing all the recent gains the stock had made after posting stellar earnings last week.

Motorola reboots, sees Droid powering big holiday sales

Filed under: Company News, Technology, Earnings, Google , Motorola, Research In Motion, Apple

Like a Phoenix risen from the ashes, Motorola (MOT), the one-time purveyor of that grey clamshell phone that everybody had back in the day, reported its second consecutive quarterly profit. It earned $12 million, or a penny per share, compared with analyst estimates of a break-even quarter. The bigger -- and better news -- came from Moto's outlook. Execs predicted fourth-quarter earnings, excluding certain costs, of 7 cents to 9 cents a share, ahead of analyst expectations of 6 cents.

Earnings Wrap: Exxon, P&G, Motorola, Sprint, Aetna

Filed under: Company News, Earnings, Exxon Mobil, Motorola, Sprint Nextel Corp., Procter & Gamble

exxonThe world's largest publicly traded oil company says third-quarter profit tumbled with crude prices, but like other big energy companies, production is bouncing back.

Exxon Mobil Corp. (XOM) reported Thursday that profits from July to September dropped 68 percent to $4.73 billion, or 98 cents per share.

Exxon depends on oil and gas production for more than two-thirds of its earnings. The company's petroleum production increased by 3 percent from the same period last year, though crude fetched an average of $50 less per barrel.

Stocks in the news: Travelers, AT&T, McDonald's, Microsoft

Filed under: Microsoft, Motorola, Apple, AT&T, Xerox, McDonald's, Travelers, UPS, Merck, Schering-Plough

Shares of Travelers Cos. (TRV) shot up more than 4 percent in pre-market action after the insurance giant Thursday reported a much higher third quarter profit, earning $935 million, or $1.65 a share. Per-share earnings far exceeded a consensus estimate of $1.30 a share, according to a poll of 15 analysts by Zacks.com. The company credited fewer losses from national disasters as part of the reason for the boost in profit. Last year, the Minneapolis-based company earned $214 million, or 36 cents a share, in the third quarter. Travelers also declared a 10 percent increase in its regular quarterly dividend and committed to buy back an additional $6 billion in shares.

AT&T (T) reported lower earnings as more and more Americans hang up on landline phone service. The nation's largest communications company reported it earned $3.19 billion, down 1.2 percent from $3.23 billion a year ago. On a per-share basis, AT&T earned 54 cents a share, a penny less than last year. AT&T, which provides cellular phone service for Apple Inc.'s (AAPL) popular iPhone, said it added more than 2 million new wireless subscribers in the quarter, well surpassing expectations. Shares of AT&T were higher in extended hours trading, up more than 3 percent.

Sony Ericsson, Nokia stumble: will they be eclipsed by new mobile stars?

Filed under: Technology, Earnings, Motorola, Nokia, Sony

Google (GOOG), IBM (IBM) and Intel (INTC) all turned in solid earnings performances this quarter, prompting optimism about the tech space. But there were some laggards, particularly among mobile phone makers.

Sony Ericsson said Friday it lost $245 million in the third quarter due to falling sales, but skittish investors were comforted by news that the joint venture between Ericsson and Sony (SNE) had secured fresh financing from external investors. Meanwhile, Nokia (NOK), the world's largest cellphone maker, shuffled its management team, one day after reporting a whopping $836 million loss thanks to a steep decline in its smartphone market share.

Will car battery maker A123 Systems jump start the IPO market?

Filed under: Technology, General Electric , Motorola

A car battery maker based at the Massachusetts Institute of Technology is poised to jump start the market for initial public offerings (IPOs).

The company, A123 Systems (AONE), makes batteries for electric cars, went public Thursday morning at $13.50 a share, with the goal of raising $380 million. A123 -- which counts General Electric (GE) and Motorola (MOT) among its backers -- got started in an effort to commercialize nanotechnology research at MIT. And it's just won a $250 million grant from the federal government to build a production facility outside Detroit.

Regrettably, it suffers from one little problem: it is losing lots of money. Specifically, it lost $40 million in the first half of 2009 on $43 million in sales, and lost more than $80 million last year on sales of $68.5 million. It faces significant competition from companies in Asia -- including Korea's LG -- which beat out A123 for a contract to make batteries for General Motors' Chevy Volt.

Source: Google Android will take off in early 2010, challenge iPhone

Filed under: Google , Microsoft, Motorola, Apple

An onslaught of slick smartphones running Google (GOOG) Android will goose adoption and send Android marketshare soaring in early 2010, said a source close to the Android team with knowledge of customer trends and sentiment for the Google-powered handsets. "The only thing holding it back is the lack of devices. And by early next year there will be dozens of Android devices online, Marketshare is going to skyrocket," said the source, who has worked directly with the Android team.

The source also contradicted reports from mobile ad networks AdMob that iPhone users actually download more apps than Android users. AdMob data is controversial because it primarily relies on ads placed in applications to gauge behavior. "From what we see, those AdMob numbers are extremely low and under represent engagement and app downloads by Android users," he said.

Stocks in the news: Campbell Soup, Morgan Stanley, AIG, National Semi

Filed under: Company News, Investing, Earnings, Delta Air Lines, Morgan Stanley , Motorola, American International Group, INC., Campbell Soup Company

Some of the companies making headlines today:

Campbell Soup (CPB) is reporting fourth-quarter earnings, with analysts expecting the company to report earnings per share of 26 cents, in line with last year. Update: Campbell reported that adjusted net earnings rose 11 percent to $107 million compared with $96 million in the prior year's quarter, and adjusted net earnings per share grew by 15 percent to 30 cents in the current quarter (negatively impacted by currency exchange by 2 cents) compared with 26 cents in the year-ago quarter.

Morgan Stanley (MS) CEO John Mack is stepping down and will be replaced by retail brokerage head James Gorman. Mack has struggled to return Morgan Stanley to profitability as the firm has lost money since the third quarter of 2008 and reined in trading even as Goldman Sachs Group Inc. (GS) earnings hit an all-time high.

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