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: Howard Salwen who wrote (3601)	10/27/2002 4:57:22 PM
From: rich evans	Respond to of 3770

The ADT accounting issue not a problem or error. It is judgment issue like LIFO vs FIFO in inventory value. Tyco buys a SERVICE contract for $1000 dollars paying $30/mo for 3 years. The customer needs to be connected. The dealer could connect as tyco deal is service only but hires Tyco ADT to connect for $200. The dealer pays Tyco $200 and tyco expenses its cost- say about $200. It depends how you want to look at it. Service vs installation is two different deals and contracts or treat it as one contract with cap ex acquistion of the net $800 paid the dealer after the $200 offset. Frankly the two contract approach I think is correct but the net approach is more conservative. Not fraud like WCOM capitalizing real expenses. Also not a big deal at 35mill dollars per Q on a 9 bill per quarter rev.It just gives the negative spinners like Reuters a chance to mislead. Both ways are legit. Rich

To: Howard Salwen who wrote (3601)	10/27/2002 7:19:14 PM
From: Sr K	Read Replies (1) \| Respond to of 3770

The Boies firm, represented on the conf call by David Boies, was not supposed to be part of management, I thought. You refer to "management is making a serious effort to uncover all irregularities" but it is largely Boies' firm's efforts that the shareholders and ratings agencies are relying on to discover any that remain or have been concealed. When Boies speaks as management and when the 3 speak as one, that is not independence. If you were going to hide something, would you put it in the biggest, most obvious place, or tuck it away somewhere that doesn't get looked at too often or too carefully? 60% done doesn't mean anything to me. And Boies' newfound lack of independence bothers me. But having all of those people at all of those locations looking around, seems fair and likely to find things that were characterized as "not major". These days the market doesn't care about misses and restatements. Other times, 1 cent under was a big deal.