MOT has traded down because their biggest customer NXTL is being bought by FON. Please keep in mind, that is the way it looks on paper. The reality is that NXTL is buying FON. FON plans to spin off its valuable access lines to a separate company. To do so, at least 51% of the current owners must be in the new owners. FON is buying NXTL as essentially a merger of equals, but the officers of NXTL will be in charge of the new company.
Instead of MOT losing its biggest customer, its biggest customer just doubled in size. Besides, MOT has exciting new phones being sold by VZ and others. Comcast is buying new cable boxes from MOT. The company has spun off its semi-conductor sub to focus on products. NOK and MOT will sell a lot of new phones as consumers become accustomed to camera/picture phones.
Next generation equipment will cost more but give the consumer more. Buy MOT with confidence.
Monday, December 13, 2004
BUYING OPPORTUNITY--MOT
Posted by Jack Miller at 12/13/2004 10:08:00 AM
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