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Hedge Fund Trade of the Week: Motorola Solutions

Thursday, 2 Jun 2011 | 6:10 PM ET

Where’s the fast money finding opportunity? In this regular feature Anthony Scaramucci aka The Hedge reveals his latest greatest pick!

This week’s trade is long Motorola Solutions, the new company formed after the divestiture of Motorola Mobility.

According to it website, Motorola Solutions connects people through technology serving both business and government designing and developing devices such as radios and the infrastructure that supports them.

Check out the chart and some of the company’s stats:

Motorola Solutions (MSI)
Sector: Technology
Industry: Communications Equipment
Market Cap: $15.9 billion
Based in: Schaumburg, IL
52-week high: $64.61
52-week low: $36.52

Anthony Scaramucci selects this stock as his Hedge Fund Trade of the Week because of some catalysts that he thinks will push the stock higher. They follow:

- New Dividend
- Buy Backs

According to Scaramucci, because of the cash Motorola Solutions is generating, he thinks they could initiate a dividend of roughly 1.5%. Also, he thinks the company will implement a one time buy back of about $4 billion. In addition, he thinks the stock is cheap.

Because of these catalysts, this is the kind of stock that Scaramucci and his hedgie peers are more likely to hold in their portfolios, even if the market pulls back. “Low multiple names with catalysts,” he says.

So where's this stock going? Scaramucci thinks over the next 12 months the stock could trade between $57 - $69.

And he’s not the only top hedge fund manager that’s bullish. Carl Icahn, George Soros and James Dinan are also in the name.

Hedge Fund Trade of the Week
A look at the hedge funds in Motorola Solutions, with Anthony Scaramucci, SkyBridge Capital.

Click here to check out other Hedge Fund Trade Of The Week posts

* Anthony Scaramucci runs SkyBridge Capital, a leading alternative asset manager with more than $7 billion under management. Every week on Fast Money, Scaramucci, aka 'The Hedge', takes you behind the hedges, giving you an unprecedented look at the names getting the most chatter amongst the hedge fund community.



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Trader disclosure: On June 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by “Fast Money” traders; Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM); Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (HPQ); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (MCD); Terranova owns (PEP)
Terranova owns (VRTS); Terranova is short (DELL); Grasso owns (AKS); Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C)
Grasso owns (D); Grasso owns (HOV); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST); Adami owns (AGU); Adami owns (C); Adami owns (INTC); Adami owns (GS); Adami owns (MSFT)
Adami owns (NUE); Adami owns (BTU)

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For Steve Grasso
Stuart Frankel & Co and its partners own(CSCO)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HPQ)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own MU
Stuart Frankel & Co and its partners own msft
Stuart Frankel & Co and its partners own (NYX)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own RDC
Stuart Frankel & Co and its partners own (SDS)
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Stuart Frankel & Co and its partners own (XRX)
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Stuart Frankel & Co and its partners own (AAPL)

For Anthony Scaramucci
Skybridge is a fund of funds manager
Funds held may or may not own the recommended securities




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