John,
Re: Could they have been anticipating a potential over reaction from their banks involving the credit lines and be trying to take advantage of the credit lines while they were still there?
First, you fail to understand the seriousness of the situation. You talk of "over reaction". It would be far more useful for you to talk about "reaction" or prudence or basic business sense. There is a pattern to these credit line drawdowns. Enron did, Global Crossing did it, K-Mart did it, Level 3 is in the process of doing it, TTBOMK. It is an obvious red flag. It is a last gasp grasp for a breath of air by a drowning business.
As retail speculators we have no insider information, no investment bankers work-ups, no auditors working papers. All we have is the ability to deductively predict a future course of events with very few signposts to go by.
Tyco has made it abundantly clear to the informed speculator that it is bent. Maybe not rising to the level of an Enron, but that report yesterday that they'd bought 700 companies and conveniently failed to mention it in three years of financial reporting is a three alarm bell red flag. The heavily footnoted byzantine arcana of the financial reports, another red flag. You may, along with a few other stubborn ill-informed outsiders, have faith in this company. But the tape today said this sucker is going down. Believe it.
Just one man's opinion......
Good Luck, Ray :) |
