Anyone know why it dipped so hard at the end of April?
Anyone know why it dipped so hard at the end of April?
Lack of confidence by investors. Thay altered their strategy (in a major way) twice in 6 months. I don't read Kiplinger's Magazine but here is an exerpt from the April issue entitled, The Next Enron?:
The credit problems and the additional borrowing costs they produced will trim 15 cents off the $3.70 per share that Tyco had previously said it would probably earn in the fiscal year ending September, says Kozlowski. Weakness in electronics could clip profits by another 25 cents per share, and "internal distraction" could shave an additional 5 cents, he warns.Brett Gallagher, head of U.S. equities for Julius Baer Investment Management, is cautious. Although he believes fears of accounting issues like Enron's are overblown, they still could haunt Tyco: "When access to credit markets is hard to come by, that's a very real expense. It's a case of perception beginning to become reality."
Bottom line: Tyco may be cheap, but until it can persuade investors that its bookkeeping is on the up and up, all but the bravest should stand aside.
I'm sure there were other articles just like this. The whole article is here: