Tyco International Limited (TYC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Tyco International Limited (TYC)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: hdl who wrote (3686)	5/3/2005 5:28:33 PM
From: rich evans	Read Replies (1) of 3770

Here is my take: SALE OF BUSINESSES: Tyco now selling plastics. This business was once on the block for 3.5 bill.Its total assets from last 10K is $1543 mill. And tyco took a impairment charge in Q2 report of 200mill on plastics(A@E) so now carried on books at $1300 mill approx. Hope they sell it for more than that. Why take the charge if selling for more $1.3 bill? Tyco said also selling other businesses in Electronics segment- and mentioned telecom. This would be Tycom, Also could well be selling power business consisting of power supplies and UPS batteries. And probably selling PCB business. Also appears they are selling wireless business as Breen mentioned 4 bill total in revs, and wireless is telecom which Breen said he is getting out of. Revenues in 2004 were: 492 mill-Power 460 mill-PCB 206 mill-tycom 835 mill-wireless 1742 mill-Plastics. This ballparks to the 4 bill in revs Breen said he is getting selling. All these businesses are low margin in the low single digits. Tyco said would put the money from these sales to work in high margin business- spelled health care. They obviously have something on the plate and talked about revealing/closing it later in the year. Basically we are selling all the dogs that Koz bought like Lucent Power systems, Praegitzer PCBs, Tycom and Plastics. Koz of course also spent 9bill for CIT and sold for 4.4 bill,Koz spent 3.5 bill for TGN and now sold for 130 mill. So Koz acquistion record is mixed. He had winners also and Tyco is staying with the winners in Engineering-keystone, electroncis_amp, health, and ADT. Still, these are big changes. Creates lots of uncertainty. No one can alnalyze it for 1 year. We have to trust Breen. The quarters report which pushed out profit recovery for 1 quarter did not bother me. Higher marketing in ADT is OK . We used to spend 300 mill a Quarter on Dealer contracts and not expense them. This new ADT business model is much better. SEC is done deal at only 50 mill. Everyone was estimating 200mill. And higher commodity prices has topped out, so that will be passed thru now. And finally the A/R working capital increase hurting cash flow by 327mill comes from increase business and no sale of A/R and CFO said three times quality of A/R no problem. So I feel positive about tyco and bought a slug of Jan06 30 calls today. Only negative and problem I see is 200mill charge on Plastics. This would indicate sale for 1.3bill not 3.5 bill. Wish I knew more.The guys running Plastics are old Cytec guys and very good. So why sell so cheaply. Tyco better rebound after the street has had a time to digest the report. The street knew of course ahead and that is why stock has been weak. Fidelity per 8K filed has been the big seller it seems. Well they all are going to live to regret it. Just you wait, Mr. Higgens, just you wait. Rich

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next