<<Very sad day for investors in this company.>>
Hi Finder!
I can understand the pain, but, respectfully, must disagree.
IMO it's a sad day for traders who bought higher, but an ok day for "investors".
Let me make my case.
All this stems from Tice/allegations of irregularities in accounting.
Not one analyst from the street has backed up these allegations.
And not one analyst, as if I recall correctly, has downgraded TYC. In fact, Yahoo is showing 11 "1's" and 4 "2's" a month ago and 12 "1's" and 3 "2's" now.
If there was anything there, don't you think these guys would have sniffed it out?
An "investor" now has an opportunity to buy at a fire sale price. The thread has mentioned a current 10 PE versus 20% projected growth.
An investor already in, IMHO, can either buy in low and lower their cost basis or, if they hold, look forward to seeing a fairly decent recovery. Evidence of this? Look at the institutional buying pressure this morning (thanks Chuzz). The pros knew a bargain when they saw it:
thomsoninvest.net
(type in "TYC")
And when the SEC comes out with an all clear, full speed ahead.
From the street.com today:
<<Some analysts said they were thrown by the announcement.
"The SEC has reviewed this company extensively and has cleared them," said Edward Wheeler, an analyst at Buckingham Research Group. "It's surprising that there is an (outstanding) issue."
Wheeler rates Tyco a buy and has not done any underwriting for the company....
An analyst who would only speak on background said Tyco had backed the investigation following assertions that it had failed to report losses at AMP and U.S. Surgical, two companies it acquired. "Tyco almost invoked the SEC inquiry," he said. His firm has done underwriting deals with Tyco in the past year and holds a strong buy recommendation.>>
Best wishes,
Tom |
