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Non-Tech : Tyco International Limited (TYC) -- Ignore unavailable to you. Want to Upgrade?

To: BMcV who wrote (3274)	5/1/2002 8:38:45 PM
From: geoffrey Wren	Read Replies (3) \| Respond to of 3770

Yes, but TYCO's goodwill is 35B, and equity is 31B. I suspect we will see some large write-offs of goodwill in the near future. Then that the debt-equity ratio will change. I am sure RAD's ratio was much better before their write-offs and adding the off balance sheet obligations (long-term leases) to their debt column. Any large company with a lot of debt is subject to the "run on the bank." With loss of confidence, they lose access to the better credit markets, pay higher interest if they can borrow, run afoul of loan requirements, and can cascade down. The fellows from Enron said it was the run on the bank that ruined them. I think that is BS. But I would agree with the premise that a lot of bad press can really impact a company. My hunch is that there will be some more bad accounting disclosures with Tyco in the near future. If my hunch is wrong, TYCO is probably a buy now. Good luck.