Motorola (MSI) Near an All Time High

I'm a big fan of strong-performing technology-type companies and MSI fits the bill

Motorola (MSI) Near an All Time High
Photo by Thai Nguyen / Unsplash

I was screening for potential candidates for my upcoming 2024 Buy List and came across Motorola (MSI), an old stalwart, bumping around its all-time high. It's doing fundamentally and technically well and that brings me joy. It's doing so well that I did add it to my buy list.

MSI hitting an all-time high, (c)

However, there might be some risks involved with MSI. Looking at the chart above (and below), MSI has been consolidating at near its all-time high. It made a big run higher on good earning news at the beginning of November and I think the Bulls are taking a breather right now. Everyone is wondering if prices could go higher here.

MSI Stock Price (c)

It's like when a general breaks through the enemy's lines and suddenly captures a wide swath of territory. At first, it's "hell ya, we won" but then it turns into "shit, now what?" Only time will tell if the Bears come back and push prices lower.

MSI is a good company that's been outperforming the S&P500. Rebasing MSI and the index to 2010 shows a big performance divergence. Of course, past performance doesn't guarantee future returns, but MSI is considerably higher in relative performance.

MSI vs S&P500 Relative Performance, (c)

I'm a big fan of strong-performing technology-type companies and MSI fits the bill (for now). I did enter a small position in MSI and I'm sure as hell will be following all my risk and portfolio sizing protocols for MSI. I have a generic stop loss set and if MSI breaks higher from here, I'll adjust that stop to a trailing ATR type.

Disclosure: Long

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