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Politics : High Tolerance Plasticity

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To: kodiak_bull who wrote (14326)6/7/2002 3:17:31 PM
From: pvz   of 23153
 
The problem with earnings is that if the acquired subsidiaries turn out to be less valuable than once thought, some of that goodwill could be impaired. A hefty impairment charge could compromise those nice earnings.

Admittedly that would bring in the cash flow/non cash flow discussion, which can be argued both ways.

One way of getting to the bottom of Tyco's issues, is looking at its debt ratings. Given that it was downgraded to just above junk status today with a possibility of future downgrades, I think it boils down to how much risk one is prepared to take...
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