It looks like Tyco has learned its lesson...

[Random Variable]

NOT!


"Even the ongoing aftershocks of financial scandal haven't persuaded Tyco International to embrace corporate-governance reforms proposed by investment groups.

The company, whose stock sank more than 70% last year amid criminal indictments of ex-CEO Dennis Kozlowski and two other former executives, is urging its shareholders to reject the proposals at the company's annual meeting in March. The measures would require Tyco to:

- Incorporate in the USA instead of in Bermuda, where the company is now.
- Seek shareholder approval for some large severance deals with executives.
- Base stock option awards on company performance.
- Limit the company's accounting firm to audit work alone.
- Split the jobs of chief executive and board chairman.

Tyco characterized the proposals as overly restrictive in a preliminary proxy filed this week with the Securities and Exchange Commission. The company said it plans to 'evaluate the potential benefits, costs and disadvantages of' leaving its tax haven base and shifting its headquarters back to the USA ? but urged a 'no' vote in the meantime."

http://www.usatoday.com/money/industries/manufacturing/2003-01-23-tyco-reforms_x.htm

 

[GasX]

Their headquarters's location has little to do with why their stock tanked.

 

[ElFenix]

sounds like they're fscked

 

[glenn1]

Why even concern myself with some sh!thole company like Tyco (trading at $16 and change) when i can buy Pfeizer for $30/share? Or WalMart for $47, CommerceBank for $44, Pepsi for 41, Intel for 15, Nvidia for 10? There's hundreds of companies i'd rather own than Tyco.

 

[compudog]

My company has seen an increase in orders since Tyco started their slide. Bad for Tyco, good for me.

 

[Random Variable]

Originally posted by: Mwilding
Their headquarters's location has little to do with why their stock tanked.

An offshore headquarters limits the ability of shareholders to sue the company for wrong-doing, and it limits the ability of the U.S. government to seek prosecution against the executives. And I have yet to see any evidence that shows corporate inversions and improved stock performance are directly related. But look at the other four things that they went their shareholders to reject.

 

[gotsmack]

Originally posted by: glenn1
Why even concern myself with some sh!thole company like Tyco (trading at $16 and change) when i can buy Pfeizer for $30/share? Or WalMart for $47, CommerceBank for $44, Pepsi for 41, Intel for 15, Nvidia for 10? There's hundreds of companies i'd rather own than Tyco.

I just moved the $3k for last year's Roth IRA contribution into 270 shares of NVDA. now the big question is what to put this year's 3K into.

 

[GasX]

I didn't read the article. I will though - I am a shareholder.

 

[glenn1]

I just moved the $3k for last year's Roth IRA contribution into 270 shares of NVDA. now the big question is what to put this year's 3K into.

Well, what do you own now, besides NVDA?

 

[gotsmack]

for my roth I have about $2K worth of AMD and some cash, maybe like $500. I'm thinking about Ford. I want to put some money into 3M but their stock is too high. 3K is only going to get me a couple shares. Maybe something in computers/semi-conductors or something like Martha Stewart.

 

[glenn1]

for my roth I have about $2K worth of AMD and some cash, maybe like $500. I'm thinking about Ford. I want to put some money into 3M but their stock is too high. 3K is only going to get me a couple shares. Maybe something in computers/semi-conductors or something like Martha Stewart.

Nope, something like MMM is right on the mark here, avoid Ford like the plague as they're doing horrible and a rebound isn't in sight for them. You need something to counter the strong tech bias in your portfolio, and preferrably which pays a solid dividend (unlike NVDA, AMD and the like). Something in healtcare or consumer staples would be ideal, like Johnson and Johnson, or Kraft Foods, or Fortune Brands. Don't worry about how many shares you get, in comparison to the underlying company's business prospects, the price/share is meaningless. Think of it this way, you invest dollars, not shares. Would you rather have $3,000 worth of stock in a company like Microsoft, or $3,000 in Enron? Sure, you'll get a lot more shares of Enron stock, but the shares themselves are worthless.