(B)(N) ADT ADT Corporation

“Jack And The Beanstalk” is just a “Fairy Tale”, isn’t it?

Deal Book. Another “green mail” attempt has landed with a thud – too much water – and attracted the “lawyers without portfolio” (LWPs) to protect shareholder rights, if they can find some to compensate (The Street, January 31, 2014, Greenberg: Why ADT Is Appalling and Business Wire, January 31, 2014, SHAREHOLDER ALERT: Levi & Korsinsky, LLP Launches Investigation of THE ADT CORPORATION for Possible Violations of Federal Securities Laws).

Hopefully the 140 year-old company, founded in 1874, has a brighter future ahead of it after emerging from the embrace of Tyco International Limited in 2012, but we can’t see that early investors were buying anything but promise between the issue price at around $37 and the escalator to almost $50 a few months later to much analyst acclaim (The Motley Fool, October 4, 2012,  This New Spinoff Begs Your Attention).

Our estimate of the “price of risk” was $47 at the time and it has since plunged to $40 based on the demonstrated resolution of investor “risk aversion” – we want our money to be safe – 100% capital safety – and to obtain a hopeful but not necessarily guaranteed return above the rate of inflation. But we guess that not everybody has read “Jack And The Beanstalk”.

Exhibit 1: (B)(N) ADT ADT Corporation – Risk Price Chart

(B)(N) ADT ADT Corporation

The ADT Corporation is a provider of electronic security, interactive home and business automation and related monitoring services.

(Please Click on the Chart to make it larger if required.)

From the Company: The ADT Corporation provides electronic security, interactive home and business automation, and related monitoring services under the ADT, ADT Pulse, and Companion Service brands to residential and small business customers in the United States and Canada. The company’s electronic security and home/business automation solutions include the installation and monitoring of residential and small business security and premises automation systems designed to detect intrusion, control access, and react to movement, smoke, carbon monoxide, flooding, temperature, and other environmental conditions and hazards, as well as to address personal emergencies, such as injuries, medical emergencies, or incapacitation. Its products and services consist of ADT Pulse interactive home and business solutions, and home health services, as well as monitoring center supported personal emergency response system products and services. The company also provides technical services for the maintenance and installation of upgraded or additional equipment. It operates through a network of dealers, affinity organizations, and technology providers. The company was founded in 1874, has 17,000 employees and is headquartered in Boca Raton, Florida.

For more information on the chart elements and additional references to the theory, please see our Post, The RiskWerk Company Glossary.

And for more on what risk averse investing has done for us this year, please see our recent Posts on The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class action, La Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100. And for more on what’s Working in America, Big Oil, Shopping in America or Banking in America, to name just a few.

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond™
Alpha-smart with 100% Capital Safety and 100% Liquidity
Guaranteed
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to RiskWerk@gmail.com.

Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.