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

To: Spekulatius who wrote (24509)	6/18/2007 5:24:28 PM
From: Madharry	Respond to of 78704

i put some more money into tyco today. we will see how the breakup plays out. I read or heard somewhere an analyst believed that 2 of the three companies will be taken over by private equity over the next 12 months. if that happens positions taken now should be profitable over the next 12 months.

To: Spekulatius who wrote (24509)	8/10/2007 1:56:45 AM
From: Spekulatius	Respond to of 78704

TYC fragments: COV, TEL and TYC. For every 4 shares of TYC you should have received one share each of TYC (new) ,TEL and COV. Total combined value of TYC+TEL+COV=44+34+40$=118$. This would be equivalent to 29.5$ for the old TYC. This is not exactly a strong showing. From the TYC fragments i bought COV and TEL today. COV is simply one of the cheapest medical supply/equipment stocks i can find, based on P/S, cash flow etc. the reason for this is substandard growth. R&D in underfunded with only 2.65 of revenue. the latest earnings report was decent. i think there is a good chance that the spinoff unlocks value. I was unsure about TEL and held of until earnings came out, since competitor Moltex had a very weak report. TEL's earnings look much better, so I decided to buy. TEL's business is tough and commoditisation is an issue but TEL is a leader in most business segments. FCF looks very decent so I hope that the spinoff will unlock vale as well. Based on competitors valuation TEL also looks cheap IMO. Good old fashioned industrials with strong cash flow are hip right now. Those TYC fragments ought to have their day as well I hope. It would be about time.