I know tech is very weak today so it might not make sense to read too much into it but Motorola (MOT) is giving up its Friday gains pretty quickly today. I still think the bearish view presented in my earnings coverage is the right call, especially for the first half of 2007.
Friday’s rebound gave too much credit to management promises that margins would rebound quickly. I think the risks are high that it takes longer to turn around the margins. After all, the management team now promising pricing discipline is the same one that has been addicted to volume gains at any price.