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Non-Tech : Tyco International Limited (TYC)

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To: t36 who wrote (173)9/6/1999 3:23:00 PM
From: HeyRainier  Read Replies (1) of 3770
 
That little event also raised eyebrows around our firm. I've been looking through the 10-K's and 10-Q's, but the basic warning flags I usually look for aren't waving themselves as obviously as I had expected they would. My largest concern involves the rather large and frequent one-time charges TYC likes to avail itself of. These merger, restructuring, and other 'non-recurring' charges probably tend to recur a little bit more often for TYC due to its status as a conglomerate--it's in the business of mergers and restructurings. Sometimes, a little too much can be written off: restructuring charges sometimes include in it costs that by rights should be hitting future years' operating earnings. That could explain the rising operating margins of the company, but I admit all this is just speculation.

If anyone would like to add some comments, I would certainly welcome it; I'll learn much faster if someone out there with more experience on the subject shares his or her thoughts.

Rainier
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