Over on BloggingStocks.com, Jim Cramer has weighed in on Motorola's upcoming earnings and the dismal report just issued by Ericsson . According to Cramer, After the devastating profit news from Ericsson, which is made doubly bad by the company's having raised the bar just last month and signaling upside surprise, it is time to consider an Ericsson-Motorola tie-up.
The TV stock-shock jock claims that both have complimentary businesses that could easily combine to take on mobile handset giant Nokia (NOK). Both of these companies are getting their heads handed to them by Nokia, quips Cramer.
ERIC is getting hammered today after the company's released its quarterly performance, with the shares down more than 23%. Expectations weren't very high for the company prior to its report, with the stocks' Schaeffer's put/call open interest ratio (SOIR) of 1.10 ranking above 71% of all those taken during the past year, while 7 of the 14 analysts following ERIC rating the shares a hold.
MOT, meanwhile, is slated to release its quarterly figures on October 25. Analysts are looking for a profit of 4 cents per share. If MOT tanks as big as ERIC has today, Cramer's proposed merger idea could start to look like a really good idea for both firms.