Value Investing News

...perhaps its time for the company's investors to flush and start over with clean water.

Motorola Inc. (NYSE: MOT) is scheduled to release its fourth-quarter financial results before the market open on Thursday, January 28, 2009. Analysts, on average, currently expect the company to report earnings of 8 cents a share on revenue of $5.94 billion.

In the corporate world executives receive high amounts of compensation including salary, stock options, restricted stock, perks and many others, which in some cases could amount to millions of dollars. It is often argued that executives of large Fortune 500 corporations get a large paycheck as an incentive to perform well in order to reward shareholders with increased wealth.

A true cigar butt valued at well under net cash, Qiao Xing Mobile is nevertheless a growing and quite profitable Chinese mobile phone maker. Can the company survive, or is the market correct in valuing the business at 0 against strong competitors?

Nokia is the world's largest mobile phone maker, with dominant market position in most geographies and a considerable scale advantage allowing it to be the low cost producer in a commodity market.

After the massive losses, stock valuations are looking good. Better opportunities may also lie in convertibles, bank loans, swaps, and merger arbitrage.

The global wireless industry has been exploding — over 250 million subscribers in the U.S., over 500 million in China, there are more people on this planet that own a mobile phone than those that own a computer — bottom line, this is the place to be for the long haul.

The hate e-mail can stop!! This blog has been investing real money in the magic formula for over 2 years. 2007's results and results since inception are now posted!

Barron's cover story this week that looks at 10 potentially inexpensive stocks that may be worth investing in this down market.

A segment-by-segment breakdown and valuation of AAPL (including the iPhone) that shows the implied expectations of the current market price.

Excerpt: "Value investing team Dodge & Cox likes to buy companies that are temporarily undervalued by the stock market but have a favorable outlook for long-term growth. They value companies based on their underlying financial condition and prospects including future earnings, cash flow and dividends."

No, it’s not Christmas in July, for those of you like me who remember when retailers would do “Christmas in July” sales. The season I am referring to is the earnings season that kicked off two weeks ago with Alcoa’s earnings report.

After Motorola threw in the towel on making money in cell phones this year, is it a good buy? It was not 3 years ago. This analysis is still valid today. Motorola’s failure bodes well for Nokia. Disclosure I own Nokia stock.

Discussion around a shareholder proposed "Plan B" to unlock the value at Motorola. With Carl Icahn and Eddie Lampert as shareholders, maybe this plan will come to fruition.