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More comments on smaller companies going after big ones from June 23, 2014 article
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Ken,
I would like to respond to John from NJ. After the CEO (Dennis Kozlowski) of Tyco International was sent to jail, Tyco could not give away it's stock. The board of directors saw fit to divest Tyco into four separate corporations (for the purpose of unlocking value). The four corporations are:
Tyco International (manufacturing)
TE Connectivity (the old Amp connector company)
Coviden (medical)
ADT (security)
Now Coviden is spinning off it's pharmaceutical business.
Tyco International does not own ADT. That in no way suggests that ADT does not get special pricing. I am sure ADT does get better pricing due to economy of scale.
A wise man once told me "keep your friends close, and your enemies closer".
ADT and AT&T both trade on the stock exchange for about $35.00 a share. ADT pays a 2.3% dividend yield and AT&T pays a 5.2% dividend yield. Considering the banks are only paying 50 basis points, these companies are good enemies to have.
I very rarely lose a job to my enemies, but even if I do, my enemies will pay me. Win-Win? I don't expect everyone to adapt to my strategy.
History does repeat itself,
When Apple could not sell it's stock @ $20.00, Bill Gates bought millions of shares at $26.00. Apple is now $90.00 a share after a 7 to 1 split.
Consider this, if every alarm company owner bought a thousand or two thousand shares of ADT stock, just how powerful our collective voice would be! Better yet, being involved in an alarm association that pays you!
When I do sell, the multiple will not be the deciding factor, since my enemies will still be paying me!
As an industry, we need to stop whining. Remember "God helps those who help themselves".
Before investing consult your Finacial Adviser!
I encourage all to opine.
Tony Gallo
Rockside Security Group, Inc.
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Ken,
I read your column because it’s the only place we have that lets u let off steam, In response to this article I agree with the author, But we are the only ones to blame for what is happening to our industry, and I have tried to organize friends of mine who own small companies like myself, only to be turned down. If you want to fight back against unfair practices there is strength in numbers. Why not form a group and meet on a regular basis to talk about what we can do as an industry? I know we have associations in place but when I called to ask them about Local 3 pushing us out of the fire alarm business, for example, the reply was you have to comply.
Local 3 is a fine union and they get what they want because they have the power of membership on their side. Why not combine 3-6 small companies for buying power, and fight back for example, I was a Monotronics service rep and I was able to buy panels at ADI at their prices, this was a great way to save on panels, as Monotronics is a large company that paid well. We could benefit from each other andtrade ideas, with no need to pay dues that are collected to pay for someones salary. In time we may need to form an association, but keep it in the ranks.
Anyone interested? Reply to smartguy1958@gmail.com
Thanks Ken for allowing me a place to state my opinion.
Rob Leto
smartguy1958@gmail.com
RNR Systems
NY
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Speaking Engagements
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Quick Response Dealer and Integrator Information and Technical Conference. July 15 -16, 2014 at Holiday Inn - Independence Ohio. All alarm dealers are invited. For more information, schedule and to RSVP contact Margie or Renee at reneet@quickresponse.net or call Margie/Renee at 800 462 5353 www.quickresponse.net
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Alarm Association of Greater St. Louis. September 16, 2014. at Tech Electronics HQs office at 6437 Manchester Ave, St. Louis, MO 63139. Meeting is from 11:45 – 1:30 Video conference presentation starting at 12:15 CST. For more information or to register contact Tony Drago adrago@tyco.com www.alarmstl.org
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NYSESA - September 17, 2014 at Honor's Haven Resort, Ellenville, NY. This is the NYS Electronic Security Assoc annual meeting. Presentation on updated contracts and current legal issues will be at 10:30 AM. For more information or reservations contact Dale R. Eller, Executive Director (814) 838-0301 dalereller@itzsolutions.com
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Alabama Alarm Association. AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205 for more info contact AAA Executive Director: director@alabamaalarm.org (205) 933-9000
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Electronic Security Summit for 2014. October 22-24, 2014 at the landmark Broadmoor Hotel. Colorado Springs, CO. For more information contact Alexander J. Quirin, CEO & Managing Partner, Advisory Summit Providers, LLC., (786) 999-9738 alex.quirin@aspsummits.com www.aspsummits.com
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