Tyco’s Chief Executive Ed Breen said on a conference call that “Should the valuation disconnect persist, we are prepared to additional actions to address this,” Breen said.

Tyco has repurchased $300 million of its shares in the fourth quarter ended on Sept. 30 and an additional $200 million since then. It also spent $450 million to repurchase convertible debt securities during the latest quarter.

Tyco trades at around 13 times 2006 earnings (estimated) while the S&P averages around 15. I’ve been holding Tyco for years now, and got in at one of the worst posible times (the late nineties)…

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