My pick for this next meeting is TYCO. It is a strong global company that does bussiness all over the world. It deals in security, fire protection, valves and controls, and other industrial products. I think it is almosrt like a GE to us. It might not shoot up right away, but over time it is a strong stock to have. Here are some thoughts about the companies future:
The company is better positioned than in the past to respond to an increasingly challenging economic environment, and it has ample financial flexibility that reflects the company's substantial proportion of recurring revenue and its control over discretionary spending. Modest acquisition spending, together with proceeds from divestitures, has helped to maintain stable debt levels despite $1 billion of share repurchases in fiscal 2008.
We expect revenue and margins to decline in FY 2009, reflecting the downturn in the US construction market, declining steel prices and the appreciation of the US dollar against major international currencies. Nevertheless, we expect Tyco International’s increasing exposure in emerging economies, geographical diversity and strong order book to relatively limit the full impact of the US recession. We expect top-line and margins to recover marginally from FY 2010, given we anticipate a recovery in the US construction sector and softening of the current economic downturn.
2 comments:
I can vouch that Tyco is solid company product wise. We have spec'd many of their valves and controls for various projects and never had any complaints from clients about their equipment.
You included thoughts on the company's future. Did those aspirations come from someone affiliated with TYCO or from a particular professional investment analyst?
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