TYC: TYCO CASH TYCOON: M&A Deal King TYCO Buys Low to Sell AND Earn Higher, this is Excellence in Accounting and superior corporate excellence in pre-merger-acquisition negotiation deal making strategy by Tyco Management. It is common and Good and accepted G.A.A.P. and F.A.S.B. (accounting rules and principles) and S.E.C. accounting rule requirements to have the merger and acquisition target companies (that TYCO buys) write off or accelerate depreciation, to accomplish two goals: 1) pooling of assets so the take-over company (TYCO) does not have to wait to get TAX SAVINGS (only the IRS loses on taxes that do not have to be paid and interest/investment capital saved by TYCO on accelerated amortization, a positive for TYCO after the take over M&A merger and/or acquisition is completed) and 2) allows TYCO to buy the target company "cheaper" at its lower book value price in an all stock take over (all stock purchase) TYCO deal. The only other solution is to use up "CASH" and leave the depreciation untouched, to wait, and lose interest/capital as the unrealized true value of the company has to be claimed as "goodwill" in the cash deal, and the take over company (TYCO) has to wait to write off depreciation and amotizable goodwill and related assets, (which only makes the IRS happy at the extra taxes TYCO would have to pay the government, which the government would just waste the money anyway...TYCO is not in business to help the US IRS waste hard earned money is it?). Of course, buying a company "cheaper" does mean that its regular, steady, and normal revenue and cash flow is now a higher percentage of its total book value, thus appearing to be a higher ROI Return on Investment, especially in the next quarterly earnings reports (but no one buys a company on the earnings date, so all M&A buy ups are reported and obviously show up in the next quarter's report...how else can you do it?). The smart company's solution in M&A is always this strategy, the TYCO strategy, keep your cash, buy with stock, pay as little taxes as you are required to do, again to keep your cash. No one, and No company gets rich giving away their cash to the IRS when they can legally and properly put the money to a better use, putting it back into the company to generate more profits for shareholders, more jobs, more earnings, more profits. It is the duty of corporate management to generate the highest profit margins to benefit the shareholders who they serve. That is why TYCO Management, and Mr. (Special) K (CEO Koslowski) ought to be commended, and TYCO rightly and justly desrves to be rewarded by having bokerage houses and analysts come to its defense (as they ALL are) and call the TICE and NY TIMES accounting articles what they really are: Ridiculous! and false, and misleading allegations. That is also why TYCO stock will surely triple or quadruple in the next year from its current low of $35. TYCO rightly and justly ought to be $161 or more, that is why the proof of TYCO's success is right there in plain view in its SEC filings and earnings reports and financial statements: TYCO has the CASH, its has REAL REVENUE, it IS PROFITABLE, its is generating REAL CASH, and has REAL CASH RESERVES. TYCO is NOT a PAPER Tiger, TYCO is a CASH TYCOON.
My prediction stands, this is the best stock buy to come along in a long long time, TYC is a winner, sure to triple, and likely to quadruple. The strongest of buys imho.
I am,
Truly yours,
-Crystal Ball |
