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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (76910)	12/9/1999 1:14:00 PM
From: R.E.B.	Read Replies (1) \| Respond to of 90042

I would not touch TYC. I though it was an over-reaction the first time it dipped on the "accounting error speculation." Based on what I'm reading regarding their acquisitions, I think they used pooling of interest instead of purchase method and by doing so may have failed to book enough goodwill. The error could cause an increase in the booking of goodwill on the balance sheet, and consequently, an increase in amortization expense for prior years. This could wipe out some nice earnings in prior years. I've seen this happen before. To verify this, look at the PUT activity on the stock. The implied volitiliy is off the charts and premium at a high. Finally, what ever happens with TYC, we will be the last to know....... just like Cendant.