Icahn's down pretty huge on this Motorola trade as far as I can tell, and he's gonna need it back to $15 or so to make any money on it, again as far as I can tell from having been following his activism in this name over the last few years. But he's finally getting a large part of what he's been looking for, as Moto finally announces that it's going to be spinning off its handset division from the rest of the company.
The handset division, in case you haven't been around anybody in the developed world in the last few years, peaked at about the same time the Razr was featured on HBO's Entourage in 2004 or so...it's been all down hill from there as Motorola and its supposed and now-departed savior Ed Zander bet the next half-decade on the Razr form factor somehow convinced that tapping on a 12-button phone platform that'd been around since the punch phone replaced the dial phone a quarter-century ago was a good idea as convergence made smartphones king. In other words, the Razr was great in 2004, but it sucks in 2008 but Moto's idiots were still hoping it'd catch back on.
The good news is that Moto's finally going in all kinds of new directions, and they're going to be rolling out some really great phones this year and next. On top of that, the spin off will probably squeeze out some market value further. And the rest of the company's undervalued so long as the economy stays steady as she still is.
Will talk about this more on Happy Hour tonight, but the upshot is that Moto's a darn good looking investment (and even several-month-long trade) here below $10, just about 10% above its recent lows and still 50% from its highs last year.