ADT Hammered Again, Loses Another Billion In Market Cap

By: John Honovich, Published on Mar 16, 2018

ADT's CEO told investors that, 'in baseball terms', ADT was batting 5 for 5.

But investors told ADT's CEO, 'in baseball terms', that he was being demoted to Triple-A.

Just 2 weeks after ADT lost a billion in market cap in the wake of the Amazon / Ring deal, ADT lost another billion in market cap after announcing their full 2017 financials. In 2 months, ADT has gone from an expected share price up to $19, to pricing their IPO at $14, to opening at ~$12, now down to $9.

In the midst of this fall, they have acquired 2 security integrators, most notably the non-merger with ASG.

What is happening to ADT? Is acquiring commercial security integrators the solution? We examine these questions inside.

***'* ******* ********* ****, '** ******** *****', ADT *** ******* * for *.

*** ********* **** ***'* CEO, '** ******** *****', that ** *** ***** demoted ** ******-*.

**** * ***** ******** **** * ******* in ****** ***** *** **** ***** ****** / **** deal, *** **** ******* billion ** ****** *** after ********** ********* **** **********. ** * ******, ADT *** **** **** an ******** ***** ***** up ** $**, ** pricing ***** *** ** $14, ** ******* ** ~$12, *** **** ** $9.

** *** ***** ** this ****, **** **** acquired * ******** ***********, most ******* ******-****** **** ***.

**** ** ********* ** ADT? ** ********* ********** security *********** *** ********? We ******* ***** ********* inside.

[***************]

ADT ********** *** *** *******

***** ***'* *** ***** analogies, **** ** ***: ADT ** **** * company ** **** ******** with ********** *** *** machine ***** ********* *** yelling ** **** ***** the ********. *** ** clearly ******* ** ********** the *********** ******** ***** but *** ****** ** external **********.

Optimizing **********

*** ** ***'* ********** team's ******** ********* ** that **** *** ****-**** veterans ** *** ******, or ** **** *** it, *** "********’* **** proven ****." *** **** are ******* ** ***** strengths, ******** ** ********* operations *** ********** **** cash **** ****** ******, as***** **** *****:

** ***** ********** ** believe **** *** ******* on ****, ** **** have **** *********** ** leverage *** ***** ** that.

Disruption ** **** ********* - ******, ***.

*** **** **** **** investors *** ** **** tech ********* *** ***** to ********* ***'* ****** business *****, ********** ** how ************* ********* ***'* management **** *** **** it ***** *** **** companies **** ******** ** with * ************* *********, lower **** *****.

***'* *** ** ********* unconcerned ***** *** ****,** ** **** ******* ******* ******* **** Amazon's **** *** ******** for ***:

** ** **** ** predict *** **** *** how **** *** **** companies *** **** ***'* business *** ********* ********** fear ********** ********** ***** 'crappy' ******** **** ********** and **** ********** ******* to *** ***** ***** they *** *** *** heart ** ********* ********* like ***.

Irony ** ****** ******** ***********

************, ********* ******** ******* rightfully *** ********** ****** down **** ******** *********** as * ******** **** much ***** ********** *** much **** ********* ******. For *******, **** ** ADT's ****** **** ***** currently, *** ***** ****** at ~*.** *****, ******* integrators (*.*.,*** ****** / ********* deal** *.** *****), ********* get ******** ** * fraction ** ****. *** intrusion ******** ******* ** command ******-**** ********* *** higher ******* ****** ******* for ****.

** *** ** ****** security *********** ** * hedge ******* * ******** collapse ** *** *********** residential ******, ** ***** make ***** *************. *******, it *** *** ** a **** **** **** for ***'* *********. *** security *********** ****** ** structurally **** *** ** financially ********* ** *** intrusion ***.

Big ****** ** ******** *********** *** ***

*** *** ******* **** might ******* *** ******** integration ************ ** ** they ******** **** ****** growth ***** ** ******** integration. ***'* *** ******** as **** **** ************* *** ***********:

**** ** *** ****** names *** **** **** the ********* *** *** Nike *** ***** ** that **** ** *** country. *** ** ** bring *** ******* ************ across *** ******* ** bear? ** **** *** been * *** **** of ****** *** ** in *** ********** *****

** *** *** ***** stealing ******** ********** ******** from ******, **********, ***., by ********* ***** **********'* expertise *** ***'* ********** techs, ** ***** ******** significant ****** *** ******* an ******** ** ***'* market *********. ** **** not ** ****** ****** as *** ********** *** complexity ** ********** ******** differs **** ***** *********** core. ***********, ** ** at ***** ********* **** ADT *** ******* ** they **** **** ********* souring ** ***** **** historic ******** *****.

Comments (5)

** * ******* ******* ** *** ********* ********** ***** ************ or ******** ******** *** ******* ** *** ********:

*** *****'* ******* ** *** ******* **** *** ******* *** 'less *************' *********** ******* **** ***** ********* ** ***/********** ** just *****, *** *** *** ******* ****** ** ********** *******, one ** ******* ***** ** ** ******** ********:

** **** *****, ***** ******* *** *** ***** **** *******. For *******, *** ** ******* ************ ********* ********** ******** *********** *** *** **** ** *** ******* ** electronics *********. (**:$*** ** **** ***)

**** ********* ** *** **** ***** '************' ********* ******* ** houses ***** ***.

*** ** ****** ** *** ****** ** *** ****** - the **** ******** ** **** ***** ** **** *** ** decides ***** *** *** *** ** **** ****** **** **. The *** ****** ** ******* ******* ***** **** ******** *** lower ******* ** **********. ***** ****** ******** *** ********* ************ prior ** ******** ***** ** **** ******** ************* **** *** homeowner. *** **** *** ************ *** ** ***** ** *** homeowner ******* *** ***** ********** ** ***** ****** *** ***** designated ****** *** * ******** ** *** *****.

***'* ***** ******* ******* ** ***** ($*** ******* ** ****** cap) ** *** **** ****, ***** *** **** ** *.** per *****.

**** ** *********** ** *** ***** ** **** **** ****. Is *** ****** ** **** *** ** ***** ** ** the ****** ************?

**** ****** *** ** **** *** ** * *****, ******** worse ********.

*** ***** *******. ****** ** $*.** **** ****. *** *** alone. ******** ***********/****, *** ***** *** ****** ****** ********** *******. Traded **** **** ** $*.**, **** **** ** $** ******* years *** (** ******). ** ******* ********* *** ********** *** business ******, *** **** *** *** **********, *** *** ****** how ** **** ********* ******* *********** ****** ********, *** ******* full ********** ** *** ********. *** *** ******* ******* ***** deterrent *******, **** *** ***** ********** ******** ****** **** **** or ** ******** ****** ********. **** *** ***** *** *******. Customers ** *** **** ** **** ***** *****. ** ******* IPVM ******* ******** ***** ******* ** *** ********** ** *** internet *****. *** *** **** ****** **** *****, *** *** anchor ** ****** **** *** ********.

******: *** *****; ******* ******** *****; ******@***.***

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