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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: dlu who wrote (36060)	2/2/2002 1:18:41 PM
From: j g cordes	Respond to of 68098

TYC.. last night I listened to discussion on it. The participants all pointed to TYC being a roll ups entity essentially counting on the good graces of future investors bailing out the current investors to sustain growth. They said the company's growth has relied on ading value which in the new post Enron environment won't materialize. Why did their long term receivables and long term debt both jump essentially the same amount from 2000 to 2001? a positive spin "...For example, the analyst thinks Tyco management should try to sell CIT for a price close to the $9.2 billion they paid for it. Nevertheless, he noted that "all the negatives are in the stock." It should rebound over the next several weeks, though he doesn't rule out the stock taking a hit or two from more negative reports. Based on total enterprise value to earnings before interest, taxes, depreciation and amortization, Tyco's shares are trading at around a 20% discount to the depths it hit in 1999 amid the accounting concerns and Securities and Exchange investigation, noted Leritz. That's irrational selling, say some bulls. Matt Brown, head of equity management at Wilmington Trust Corp., said the buying momentum in Tyco's shares that began late this week should continue into next week as "panic selling" dissipates and investors "have time to take a deeper look" at the company. Few investors wanted to try to "catch a falling knife" earlier this week. Brown also said Tyco could gain support as money managers finish cleaning up their portfolios at the end of the month and take another look at the stock at the beginning of February. In addition, betterthanexpected gross domestic product numbers should help economically sensitive stocks such as Tyco's. Wilmington hasn't been adding to its position in Tyco recently because the firm already owns 3% to 4% of Tyco's outstanding shares, Brown said. But the money manager predicts the stock will "get back to $50 sooner rather than later."