Icahn: Break up Motorola

Investing Watch:  I agree with Carl Icahn on breaking up Motorola.  I don’t know if his exact plan is the right one, but I do feel that MOT’s results are overly influenced by the fickle handset market, which creates a volatility that hurts the valutation of the stock.  If the handset business was sold, MOT would be a networking company, selling wireless infrastructure (which I don’t think its highly ranked at, and frankly this should probably be sold, too), cable set top boxes and home networking gear (in which it is highly ranked, but its products could use a great deal of innovation to take advatage of the coming surge in smart home applications…its primary competitor is Cisco/Linksys/Scientific Atlanta), and business mobility (not sure what that is, exactly).

The stock is basically flat from the early 1990s and the company has always seemed directionless.  I wouldn’t be surpised to see it re-test its 2003 low of under $8.00 in the next 6-12 months.  It may be a buy at that point.

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