Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, July 9, 2010

Article Excerpt

MOTOROLA INC., $6.76, New York symbol MOT, has announced some of the details of its planned breakup into two companies. The company aims to complete the split in the first quarter of 2011. Motorola Mobility Inc. will make mobile phones and home-entertainment equipment, such as set-top boxes for receiving cable and satellite TV signals. The other company, Motorola Solutions Inc., will make communication equipment for large corporate clients, including telephone companies. Each of these businesses accounted for roughly half of Motorola’s 2009 revenue. The breakup makes sense for Motorola. That’s because its two main businesses have little overlap: The mobility business focuses on individual consumers, and the solutions business sells its products to large corporations. It also provides companies with financing for their purchases. However, the mobility division is still losing money, and faces strong competition from other mobile devices, such as Apple’s iPhone and Research in Motion’s BlackBerry. Motorola is a hold. VERIZON COMMUNICATIONS INC., $26.65, New York symbol VZ, has finished merging…