Motorola's stock market - Essay Example

Motorola's stock market Introduction: The Motorola Company was founded in 1928 by Paul V. Galvin, the companies was initially Galvin Manufacturing Corporation and in 1947 this name was changed and the company was named Motorola Company.1The Motorola Company first sold its shares to the public in 1943 at the rate of 8.50 US dollars per share. The previous trends of Motorola shares shows that it would be profitable to invest in these shares, according to a 2006 report 0n profits the companies profit level has increased by 198.

8% compared to the year 2004.2The 2006 stock market report:The revenue revel according the 2006 report amounted to 36,843 million pounds; this revenue level has grown by 4.2% from the year 2004, in this year profit levels amounted to 4,578 million pounds with an increase of 198.8% from the year 2004. Amount in million pounds percentage change from the year 2004Revenue 36,843 4.2%Profit 4,578 198.

8%3In the year 2006 the Motorola Company was ranked number 54 from a previous ranking at number 49, the ranking was based on revenue levels and the size of the company, therefore it would be advisable to invest in the company due to the fact that it is growing in terms of revenue, profits and earnings to share holders. 4In 2005 the earnings per share amounted to 1.81 pounds, the percentage change from the year 2004 was 182.8%, the total percentage returns to investors amounted to 32.5% in the year 2005 and the annual growth rate in the returns amount to 3.

8% from the year 2005.5 1995 to 2005 Amount % change from 2004 % annual growth rate Earnings per share 1.81pounds 182.8 6.4 Total return to Investors 32.5% 3.8%6 Over the years there has been an increase in the level of returns to investors as dictated by the above table, a 6.

4% increase from the year 1995 to the year 2005. The total returns to investors in 2005 amounted to 32.5% and also the growth in the rate of return from the year 1995 is an annual rate of 3.8%.7Conclusion:It would be therefore be profitable to invest in this shares which will yield returns to an investor, the growth rate in the level of returns is an indication that the investment made will yield more returns in a very short period, evidence can also be linked to the rise in its ranking among other companies, the Motorola company also seem to be growing in terms of is market share and this is dictated by the growth in sales revenue which results to higher profits, higher profits signify that the returns to investors will rise.

However even if the Motorola company shares are likely to yield returns it is advisable that one should buy them when they are at their lowest, proper investigations about current trends of their selling prices is very important, all shares tend to have their lowest and top most level and investors always tend to buy share when they are at their lowest and then sell them when their prices rise.References:Motorola Company website (2007) Timeline of Motorola 1928-2006, retrieved on 28th February, available at http://www.motorola.com Motorola Fortune (2006) retrieved on 28th February, available at www.CNNMoney.com Stock Market Boom-Bust Cycles (2006) retrieved on 28th February, available at www.ecb.de