Moto stock sinks to new 5-year low
Comments made by Foxconn Chairman Samuel Chin that Motorola "is still having difficulties" encourage a slide in Motorola's stock.
By Suzanne Deffree, Managing Editor, News -- EDN, June 19, 2008
Motorola Inc felt the pains of a new stock low today, with shares of MOT sliding to the lowest price in more than five years.
In today’s trading, MOT danced between $8.58 and $7.61, the lowest price the stock has seen since May 2003 when the stock hit $8.52. MOT closed at $8.09, 51 cents below its Wednesday close price of $8.60.
Investment analysts are speculating that the stock fell on statements from contract manufacturer Foxconn International Holdings. According to reports, Foxconn Chairman Samuel Chin commented after the China-based company’s annual stockholder meeting today that Motorola “is still having difficulties,” which are impacting Foxconn’s financials.
Motorola is one of Foxconn’s largest customers and stress at the troubled cell phone maker would impact one of its key suppliers. To offset further impact, Foxconn is currently looking to expand its business with top cell phone makers Nokia and Samsung.
Schaumburg, Ill-based Motorola is currently undergoing a reorganization that has seen a major management shakeup, the announcement of plans to spin off its mobile devices business, and more than 10,000 employee layoffs, the most recent of which impacted Motorola’s R&D group just last week.
Motorola is scheduled to report on its Q2 on July 31.
