In the opinion of value investor Robert A. Olstein, Tyco International Ltd. is the perfect example of a stock that has been beaten down by impatient portfolio managers anxiously searching for the next high-growth sensation.
Tyco still may be best known for jailed former Chief Executive Dennis Kozlowski. But Olstein, chief investment officer of the Olstein Financial Alert Fund, sees a company that should grow steadily with proper investment.
Olstein first began buying Tyco at about $15 a share. He later sold some of his stake in the mid-$30s, and lately has been buying again in the $25 to $26 range.
Tyco currently trades at 14.4 times its fiscal 2006 per share earnings forecast of $1.83, as compiled by Thomson Financial, compared with General Electric's forward P-E ratio of 17. The S&P 500 is at 17.7 times projected earnings, according to Morningstar Inc
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Tyco still may be best known for jailed former Chief Executive Dennis Kozlowski. But Olstein, chief investment officer of the Olstein Financial Alert Fund, sees a company that should grow steadily with proper investment.
Olstein first began buying Tyco at about $15 a share. He later sold some of his stake in the mid-$30s, and lately has been buying again in the $25 to $26 range.
Tyco currently trades at 14.4 times its fiscal 2006 per share earnings forecast of $1.83, as compiled by Thomson Financial, compared with General Electric's forward P-E ratio of 17. The S&P 500 is at 17.7 times projected earnings, according to Morningstar Inc
Read the complete article
