This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mallinckrodt Is Just One Of Dennis Kozlowski's Billion Dollar Babies

It is this Mallinckrodt which has now bought Cadence. Since its spin-off last summer the stock has risen nearly 50% in value under the leadership of CEO Mark Trudeau, 51, and the Cadence deal represents another 11.6% pop. Doctors are anxious to find non-opioid solutions to intense pain, and an injectable acetaminophen could be just the ticket. Mallinckrodt, with revenue last year of $2.2 billion, has the capital to deliver Cadence's solution to market

Had Dennis Kozlowski not been charged and later convicted -- a new book called Taking Down the Lion says he was railroaded -- none of this might have happened.

Which leads to this question. What if, when Kozlowski was first charged after a string of high-profile parties and gaudy purchases, you had actually decided to listen to Lefkowitz and double-down on your Tyco investment, or at least hold it?

By now you may have been richly rewarded.

Because in addition to Mallinckrodt, and Covidien, the break-up of Tyco generated the present company, now worth $19.1 billion, along with TE Connectivity (TEL), a manufacturer of a half-million products involved in connecting and protecting power and data, which is worth $23.3 billion.

Following an additional 2012 spin-off you would also have shares in ADT (ADT), the security company, which is worth an additional $5.6 billion.

All of these billion dollar babies have done their own buying and selling of other companies, and had their own adventures in the stock market. Our Richard Saintvilus likes the original Tyco, most analysts following TE call it a buy, and almost all of those following Covidien feel that way.

Kozlowski is now on parole but the fates of his billion dollar babies should at least lead him to smile. It certainly should lead those who stuck with his stock to do so.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MNK $69.48 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs