Should you sell your Motorola stock?

Caldwell Investment Management president and CEO Brendan Caldwell told BNN Bloomberg’s Market Watch on Sept. 22 that Motorola Solutions (Motorola Solutions Stock Quote, Chart, News, Analysts, Financials NYSE:MSI) remains a long-term holding in his firm’s portfolios, praising its dominant role in critical communications and security technology.

“I like it because we’ve owned it a long time,” he said. “We’re probably going to continue to own it a long time.”

He said it is the “OG phone company.”

“Before all the other phone companies, it was Motorola,” he said. “They were the dominant phone company as we transitioned in the 1980s to using cell phones. Where they’ve actually done well is in communications and security, where you absolutely have to have the thing to work.”

Caldwell pointed to the company’s history of supplying military technology and its continuing leadership in communications equipment for police and government agencies.

“They’re still the number one communications device for police on their jackets for videoing what they’re doing. They’re used by all kinds of government agencies that are at the pointy end of the spear. It doesn’t necessarily make them the sort of company that does the technologies that are fun and happy, but they are very necessary.”

He added that Motorola’s business in video security, telephone services and other communications infrastructure for governments and security agencies “is continuing to be a growing business.”

“We’ve owned it for, I think, four years,” he said. “And we’re likely to continue as that sector is not showing any signs of abating.”

Motorola shares have gained 7.3% in the past 12 months and 202.8% over the last five years. On the Street, 10 analysts rate the stock “Buy,” four “Hold,” and none “Sell,” with a consensus target price of US$509.88.

Motorola closed Sept. 24 at US$455.13.

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