On
the whole, ADT
(NYSE:ADT)
has what should be a pretty good business model. Not only does the
company have a large chunk of the residential security market, but
customers sign multi-year contracts that lead to pretty reliable cash
flow streams. Unfortunately, it's not quite that simple. ADT has to
pay quite a lot to get those customers, the equipment certainly isn't
free, and the accounting is not exactly crystal clear. All in all,
it's no slam dunk that investors will feel secure with ADT in their
portfolio.
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http://www.investopedia.com/
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