Under The Microscope

As questions swirled around its accounting practices, Tyco International, an industrial and services conglomerate with $36 billion in annual revenues–and a beaten-down stock price–said last week it would split into four companies in a bid to “unlock tens of billions of dollars of shareholder value.” The company’s combative CEO, Dennis Kozlowski, predicted the breakup would add 50% to the stock price. Going him one better, Don MacDougall of J.P.

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Insider-Trading Bust: Rajaratnam, Hedge Funds in Spotlight

On July 19, 2007, Google reported earnings that were lower than what analysts had expected, and the tech company’s stock price dropped 5% — but Raj Rajaratnam made $9 million. Allegedly, the New York hedge-fund manager had gotten a tip that Google’s earnings would be below expectations, so he was prepared with short positions and put options that would become more valuable as the stock price fell

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