• Reeling from the housing and credit crisis, luxury-home builder Toll Brothers Inc. (TOL), reported a 41% dive in its fiscal fourth-quarter revenue, Bloomberg reported. “Unfortunately, the preliminary signs of stability we had discussed in early September were upended by the past month’s financial crisis,” Chief Executive Officer Robert Toll said in a statement.

• Despite first-half profit falling 35% and a reduced sales forecast, Vodaphone Group Plc (VOD) investors cheered the company’s plan to focus on cash generation and tightened capital, MarketWatch reported. The world’s largest mobile phone provider also raised its interim dividend by 3.2%.

• Tyco International Ltd. (TYC) more than doubled net income in its fiscal fourth quarter, The Wall Street Journal reported. But the electronics and security system provider projected that fiscal 2009 results would fall below analysts’ estimates.

• Cash-flush StatoilHydro ASA (STO) said it will buy an inital 32.5% stake in the Chesapeake Energy Corp.’s (CHK) 1.8 million-acre Marcellus shale gas reserve. StatoilHydro doled out nearly $3.4 billion for the unconventional energy source, filling a huge hole at Chesapeake, which has a heavy debt burden, Reuters reported.

• The price of oil hit a 20-month low yesterday falling $3.08 to settle at $59.33 a barrel on the New York Mercantile Exchange – the lowest closing price since March 2007.

• Sirius XM Radio Inc. (SIRI) said yesterday (Tuesday) that its third-quarter losses totaled $4.88 billion, or $1.93 a share. Revenue more than doubled to $488.4 million, from $241.8 million, however. On an adjusted basis, revenue soared 16% from $529.2 million last year, to $612.8 million.

Source:Global Investing Roundups Wednesday, November 12th, 2008

This is great news for value investors.

Stephanie Grimmett says Tyco (NYSE:TYC) is a prime example of a company caught up in short-term market panic. But its dividend and fiscal outlook are relatively strong.

And its security business will remain stable — and perhaps even benefit — in a recession.

This from Today’s Financial News:

Tyco (NYSE:TYC) has lost 26% in the last two weeks. In fact, it’s even done worse than the Dow. But the company is raising its dividend and increasing its earning per share. This is a strong candidate, according to the Omaha Principle.

It’s been following the market almost exactly, rising and falling with the Dow, until two weeks ago, when shares of Tyco began a headlong crash, plummeting more than 26% in less than 11 trading days.

If you’re looking for a news-related collapse, you won’t find one here. The only thing Tyco has done in the last month was register to sell “from time to time an indeterminate amount of debt securities, preference shares, common shares, purchase contracts, depositary shares, warrants, units and guarantees of debt securities” (thank you, Dow Jones and Reuters for the quote).

That’s hardly incendiary.

Trading volume has remained steady throughout the fall, and the company’s fundamentals are still solid. Tyco just raised its quarterly dividend 33%. And the company actually moved up its fiscal-2008 guidance about 10% in July.

Tyco owns international alarm security company ADT (to be fair, I have to tell you that we’ve used their alarm system in our apartment for the last two years, but that has little to do with the share price.).

The company sells fire protection products (fire alarms, sprinkler systems and specialty fire extinguishers, among other things) and commercial security devices (closed-circuit TV cameras, ink tags for store merchandise and building keycard entry systems) in a collection of eight other subsidiaries.

The security and protection racket isn’t going to suffer from a recession. In fact, as crime rises (which happens in a recession), so do the number of home security systems and building alarms.

This stock shouldn’t stay down for long. It’s been trading at between $40 and $50 for the last year. And according to the Omaha Principle, this is exactly when we should be buying shares: TYC is a steal at $30 (but give it a few days, you may be able to get in even cheaper).

Tyco is another example of good shares gone bad because of market influences. The company is solid. The share price will return to normal levels.

And I’m not the only one who thinks so. Zacks, Fitch and Standard and Poor’s have all rated Tyco as undervalued in the last month. So as soon as the stock looks like it’s found a bottom, grab shares and be in as Tyco returns to its former glory.

Source: The Omaha Principle: Tyco (TYC) is Waaaaay Undervalued