As a contrarian and rare-event observer, Motorola is a buy. Here’s why.
Our own market psychology reading on 2008-01-24 was 19, the lowest on record. The closest was nearly 20 on 1987-10-26, more than twenty years ago.
From a low of about $2.40, it hit $3.60 twice, once within three months and another within nine months.
If history were to repeat itself, I would expect Motorola to hit $16.00 within similar time frames.
What about the potential downside? Drawing a trend-line, you can easily see the support at just above $8.00.
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$10.77 (01/27/08)
