Silicon Investor (SI) -- The First Internet Community

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) -- Ignore unavailable to you. Want to Upgrade?

To: Tatnic who wrote (3542)	7/25/2002 3:24:01 PM
From: Dave	Respond to of 3770

I've looked at Tyco several times and I truly don't know what to think. For all holders of Tyco, I believe in the future you will either be handsomely rewarded or you will lose your entire investment. Personally, I won't touch it. Many institutions were able to bid for the CIT group and all dropped out. Lehman supposedly was interested but then backed out after their plans were made public. I don't buy that at all.

To: Tatnic who wrote (3542)	7/25/2002 4:57:35 PM
From: geoffrey Wren	Read Replies (2) \| Respond to of 3770

Institutions act together usually. I would be surprised by the reverse. The public does not buy the "few bad apples, few accounting errors" explanation for recent events in the marketplace now. Suspicion is very high at Tyco in particular because of numerous signals: (1) giving $20m to member of B/D for finders fee in merger action, (2) Koslowski apparently cheating on sales taxes and having company pay his personal expenses, (3) large merging companies can hide a lot in their bookkeeping, (4) lack of proven leadership at the top, (5) rumors going back a long time of improper accounting, (6) and so on. I think there is more bad to come out on Tyco. Its book value is largely goodwill. If you wrote off all the goodwill, there would be no or little book value. A company in good position would look to float bonds to satisfy the liquidity problems and to lower interest it is paying. Tyco probably cannot do that. I wonder what Tyco bonds are selling for. Usually the discount gives you a fair indication of what the risk of BK is. GTW