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: kauaipi who wrote (3737)	6/12/2007 5:52:33 PM
From: rich evans	Read Replies (1) \| Respond to of 3770

I did an evaluation some time ago. Here was my analysis: My valuation for Tyco is $39/Share calculated as follows: 25% of business=Health--10billrevs x26%OM=$2600 EBIT 2600- $150( 1/4 total interest) =EBT. Net at 25% tax = $1.8bill / 500millshares(1/4 total of 2bill)= $3.66/share. PE of 20 = $73/share. 1/4 of that is $18 dollars. 30%=Electronics= 12000revsx 15%OM=1800 less 180 mill interest x .75(tax)= 1215 mill / 666mill shares =$1.82 x 18PE= 33 x .3= $10 45%=Fire/Security/Enginneering= 18billx 11.5%OM=$2070 -$270 interest=$1800x .75(tax)=$1350 mill /900millshares= $1.50 share x17 PE= $25.50 x 45%= $11 Total $11+10+$18 === $39share breakup value Since then margins have come down in all three groups. Part of this reduction is the FAS123R stock option accounting. This means tyco should now be worth less I think is about 34-36 dollars a share. Next fiscal year starting in september should create a value at 39. JMHO. Rich

To: kauaipi who wrote (3737)	6/13/2007 3:54:49 AM
From: Carey Thompson	Read Replies (1) \| Respond to of 3770

I will hold stock in all 3 companies until I get the financials on each new company. Until I read the financials I do not know who is profitable and who is not. BTW, have you received any financial correspondence from Tyco International? My broker is ETrade and lots of things get lost in the Eblackhole from the company to the investor. Also, one thing I noticed is the new Tyco International will immediately have a reverse 1-for-4 split. I now own 200 shs of old Tyco International, so after the split I will own 50 shs of new Tyco International 50 shs of Covidien Ltd. 50 shs of Tyco Electronics