Wednesday, November 9, 2011

Motorola (MOT).... what do you think about this?

I used to work at Motorola (MOT) in 1980's. Great company as a government contractor with innovations for various US defense services. We were a rich company with great brain power, stock was about $190 and the employees were happy. We even used to get some bonuses. Then, Mr. Galvin Sr (the major owner) died and his sons took over and drove the company into the ground by abandoning the government contractor business and going to hand-help cellular phones. Instead of building and selling equipments to US army (with virtually no other company competing for that business), Motorola goes to cheap cell phone business with many competitors. No wonder, the stock price is now only about $8 vs $190 and they have had many rounds of mive lay-offs. How did that happen and why were the Junior Galvins (the clowns) allowed to take over? What is your opinion?

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