Tyco International Limited (TYC) Message Board

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Non-Tech : Tyco International Limited (TYC)

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To: GVTucker who wrote (2635)	1/28/2002 12:48:08 PM
From: Bob Rudd	Read Replies (2) of 3770

I don't disagree that red flags like complexity are there. An important key, though, is the extent the market is overlooking or discounting complexity and accounting concerns...with GE the price pretty much overlooks these issues, but with TYCO the concerns are substantially discounted. Tice, who triggered the prior SEC concern, recently said the short case is that TYC is a 6% grower, not a 25% grower...at current multiples, this is valued like a 6% grower, not like a 25% grower. The 9/30 breakdown on his fund showed some puts [modest position] that would have expired worthless in Oct, but actually shorting of the shares [he was short 100 or so others]...translation: Not much conviction, afraid of the upside. The SEC, Barrons and recently several analysts [aware of post-enron reputation concerns] have looked at the accounting and said it's ok....by submitting to increased scrutiny thru the underwriting process DK and mgmt are saying similar. I see this split as both a cleansing and value unlocking catalyst with considerable upside....especially if a bidding war erupts on one or more of the units.

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