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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (3003)	2/1/2002 2:53:48 AM
From: techreports	Respond to of 4690

I was thinking like when Buffett bought Amex.. PE of Tyco is 12. Things could be a lot worse and the price still wouldn't look bad? Ya, but amex's problems were not on the heals of the biggest bankruptcy in US history. Tyco has off the books debt. The company has started companies in other countries with funny names. Management sold shares back to the company. Tyco has 38,243 million in long term debt (that's a sht load). Not sure why, but it's increased pretty dramatically in the last 4 quarters from just 13,143 million in debt. The company has only 2,587 million in cash. Receivable and inventories have increased 641% and 35% respectively over the past four quarters. While revenues have increased just 3.8% in the last four quarters. I got these numbers off some web sites, so they may be wrong. I should probably look at the SEC files, to check these numbers and fine out why they've increased. Also, my math could be off, i was in a hurry.. Tyoc's PE is cheap, but if earnings are reduced, then things will look different. Before Enron was delisted, I notice a few insiders bought at around 20+. Which was interesing, since these directors had no idea how screwed Enron was. We didn't see massive insider buying, which tell me that Enron wasn't worth my money if it isn't worth insider's money. So a few insiders buying at TYC means nothing. Analysts coming out and recommending Tyco is nothing, cause they did the same at Enron, although it's different today because analysts have to think harder before upgrading a company like Tyco...after seeing what happened to Enron. You'd think they'd be more cautious before upgrading another company like Enron, although these analysts will upgrade the stock if they need to unload TYC shares. cbs.marketwatch.com even the big boys make dumb moves.. At the end of 2001, Putnam owned 85.9 million shares or 5.1 percent of Tyco, according to Tyco's proxy statement filed on Monday. That was a 96 percent increase* from the 43.8 million shares of Tyco that Putnam reported owning at the end of September.