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"Too small to be material\?"

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Shares of Tyco International (NYSE:TYC) are back in the news again this morning after late Friday's regulatory filing that showed detailed costs, including some $4 billion in cash, on acquisitions considered too small to be material in fiscal 2001. Shares of Tyco (TCY) have been under selling pressure in recent weeks due to investors questioning the company's previous financial disclosures.

On Friday, shares of Tyco's (TCY) closed at the $35.63 level and trade down roughly 10% in pre-market trading to $33.24. Adding to this morning's sell is the company's announcement that it will begin a debt buyback plan that would lower earnings per share by two cents in fiscal 2002.

Stock futures lower

Stock futures are depicting a lower open as S&P futures (sp02h) trade lower by $5.50 at $1,117.90. NASDAQ futures (nd02h) are down $17.50 at $1,517 and Dow futures (dj02h) are off $46 at $9,861.

Fair value for the S&P 500 today is $0.40. HL Camp & Company has their computers set for program buying at $1.46 and set for program selling at $-0.96. Fair value for the NASDAQ-100 today is $3.00.

Bullish call in Semiconductors

Several firms (Goldman Sachs, DB Alex Brown and Soundview) are upgrading the semiconductor sector this morning. Soundview likes the "semiconductor equipment" stocks and upgrades the following to "strong buy" ... AMAT, KLAC, LRCX, NANO, NVLS and RTEC.

Jeff Bailey
Senior Market Technician
Option Investor

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