ADT Hammered Again, Loses Another Billion In Market Cap

Author: 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.

***'* ******* ********* ****, '** ******** *****', *** *** ******* * *** *.

*** ********* **** ***'* ***, '** ******** *****', **** ** was ***** ******* ** ******-*.

**** * ***** ******** **** * ******* ** ****** ***** *** **** ***** ****** / **** ****, *** **** ******* ******* ** ****** *** ***** ********** their**** **** **********. ** * ******, *** *** **** **** ** ******** share ***** ** ** $**, ** ******* ***** *** ** $14, ** ******* ** ~$**, *** **** ** $*.

** *** ***** ** **** ****, **** **** ******** * security ***********, **** ******* ******-****** **** ***.

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

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

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

***** ***'* *** ***** *********, **** ** ***: *** ** like * ******* ** **** ******** **** ********** *** *** machine ***** ********* *** ******* ** **** ***** *** ********. ADT ** ******* ******* ** ********** *** *********** ******** ***** but *** ****** ** ******** **********.

Optimizing **********

*** ** ***'* ********** ****'* ******** ********* ** **** **** are ****-**** ******** ** *** ******, ** ** **** *** it, *** "********’* **** ****** ****." *** **** *** ******* to ***** *********, ******** ** ********* ********** *** ********** **** cash **** ****** ******, ******* **** *****:

** ***** ********** ** ******* **** *** ******* ** ****, as **** **** **** *********** ** ******** *** ***** ** that.

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

*** **** **** **** ********* *** ** **** **** ********* are ***** ** ********* ***'* ****** ******** *****, ********** ** how ************* ********* ***'* ********** **** *** **** ** ***** the **** ********* **** ******** ** **** * ************* *********, lower **** *****.

***'* *** ** ********* *********** ***** *** ****,** ** **** ******* ******* ******* **** ******'* **** *** ******** *** ***:

** ** **** ** ******* *** **** *** *** **** the **** ********* *** **** ***'* ******** *** ********* ********** fear ********** ********** ***** '******' ******** **** ********** *** **** eventually ******* ** *** ***** ***** **** *** *** *** heart ** ********* ********* **** ***.

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

************, ********* ******** ******* ********** *** ********** ****** **** **** security *********** ** * ******** **** **** ***** ********** *** much **** ********* ******. *** *******, **** ** ***'* ****** down ***** *********, *** ***** ****** ** ~*.** *****, ******* integrators (*.*.,*** ****** / ********* ****** *.** *****), ********* *** ******** ** * ******** ** that. *** ********* ******** ******* ** ******* ******-**** ********* *** higher ******* ****** ******* *** ****.

** *** ** ****** ******** *********** ** * ***** ******* a ******** ******** ** *** *********** *********** ******, ** ***** make ***** *************. *******, ** *** *** ** * **** good **** *** ***'* *********. *** ******** *********** ****** ** structurally **** *** ** *********** ********* ** *** ********* ***.

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

*** *** ******* **** ***** ******* *** ******** *********** ************ is ** **** ******** **** ****** ****** ***** ** ******** integration. ***'* *** ******** ** **** **** ************* *** ***********:

**** ** *** ****** ***** *** **** **** *** ********* and *** **** *** ***** ** **** **** ** *** country. *** ** ** ***** *** ******* ************ ****** *** country ** ****? ** **** *** **** * *** **** of ****** *** ** ** *** ********** *****

** *** *** ***** ******** ******** ********** ******** **** ******, Convergint, ***., ** ********* ***** **********'* ********* *** ***'* ********** techs, ** ***** ******** *********** ****** *** ******* ** ******** in ***'* ****** *********. ** **** *** ** ****** ****** as *** ********** *** ********** ** ********** ******** ******* **** their *********** ****. ***********, ** ** ** ***** ********* **** ADT *** ******* ** **** **** **** ********* ******* ** their **** ******** ******** *****.

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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