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TheStreet Open House

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

Stock quotes in this article: MNK, CADX, TYC, COV, TEL, ADT

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.

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