Motorola
felt the pains of a new stock low yesterday, with shares of MOT
sliding to the lowest price in more than five years.
In the day'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 company's annual stockholder meeting yesterday 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, Illinois-based Motorola is currently undergoing a
reorganisation 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.
By Suzanne Deffree, Managing Editor, News - Electronic News