Tyco International Limited (TYC) Message Board

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Non-Tech : Tyco International Limited (TYC)

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To: blankmind who wrote (3283)	5/4/2002 1:35:07 PM
From: rich evans	Read Replies (1) of 3770

VSH, a component maker gave a good report. Chips up substantially and passives growing at last with book to bill over 1.This could be good news for TYCO. If electronics improves, they will exceed their low bar estimates. With no more TYCOM spending, cash flow will be greater then forecast. Only acquisitions figured in are the dealer contracts for ADT which give a 60% return. I can not understand why TYCO gets such bad press? Did you read the rueters piece. All false spin and inaccurate and half truths. There ought to be a law. But there can't be. With the economy growing the valve side should also show improvement. Thats why I like this stock. You have the revenue streams from ADT, Fire, and Health care products which are recession proof. And you have the old economy portion in valves, and structure steel etc. And you have the growth side in electronics and telecom. Can not beat that. Debt is not that high at 38% and will go lower after CIT IPO. Lot of the goodwill is the ADT dealer contracts purchased which is a future revenue stream yielding 60% and renewals after 10 years are free. I guess the only confusing part is that those contracts purchased are acquisitons not on the P/L which makes the free cash flow higher then expensing them. But I think they do charge them off over the contract terms. But I think this is a non-cash charge. Tyco should keep going up from here and after CIT and segment full disclosure accounting showing each division clearly and completely , I see a return to the old valuations in the 50-60 range. this will be after the July report and CIT sale and electronics upbeat info.Why they just didn't go this segment accounting like a trackign stock for each division originally instead of the breakup plan is beyond me. Same effect with no disruption. Rich

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