why are you better off not a part of tyco than erp as a part of it?> i think we are a subscriber-based business. we make an investment up front and get that return over time with that monthly recurring revenue to value that as part of a portfolio with a couple of other business models was difficult for the investor to understand. 90% of our business is recurring revenue, that ongoing monitoring and services -- >> ityou have your own currency now and you've done deals in the past. is that part of your strategy -- >> there are deals out there that make sense financially for our investors. but we're looking to grow both organically -- >> organic growth is, what? it can't be that large? >> we've been growing in that 3% to 5%. we've got that opportunity to grow further. today, only one in five homes has a monitored security system. >> my insurance xwacompany insi on it. i'm lowering my rates. >> and then there's the added change of mobile. and i assume how that's changing. you have a new product, adt pulse, what's that about? >> that allows you to remotely

liz: dennis kozlowski ran tyco. has been in prison with issues there. "money with melissa francis" up next. don't miss david tonight. >> i'm melissa francis and here's what's "money" tonight. germany's chancellor merkel lands in greece in wild demonstrations. the imf says our fiscal cliff is adding to this economic mess. we'll sort through all the rubble. plus it is dirty, filthy gas to the rescue. california will pollute the environment to bring down crippling gas prices. no bicycles and car pools for them. we'll break it all down. >>> how far would you go to earn a buck? not even a host passing out on air can stop qvc from making a sale. we've got the video and the details. even when they say it's not, it is always about money melissa: first let's look at the today's market headlines a grim imf forecast for the global economy sent stocks sliding down 110 points. nasdaq was the day's biggest loser posting its largest loss since june 25th. earnings season starts off on a good foot. alcoa beat estimates on top and bottom line. shares are getting a nice p

of this new obama ad that no one is talking about but was dead center, the one serving time, former tyco c.e.o. speaking to me on fox business network. the earning parade begins in seconds, with alcoa releasing earning in a few minutes with the first component to do so with earnings and revenues expected to come in a big better-than-expected. this is the kickoff to what could be a disappointing quarter for earnings, perhaps, the first contraction we have seen year-over-year in the better part of three years. if that happens it could show an earning recession with stocks bracing for that today, contracting at 110 points on the dow. profits for companies that make up the s&p 500 could be dropping 3 percent this quarter and that could be an upbeat forecast. earlier the forecast was for them to be up 2 percent. that would be the worse performance since late 2009. and now, my guest has been warning about this, the game we have been seeing in the market could be short-lived. explain that, please. >>guest: the most pro tempore -- most important factor that affects market is valuation and earnin

it seems like tycos. the united states was spending billion a year on clean energy before the recovery act. in 1999 washington completely knocked president clinton's high in the sky plan to spend $6 billion for clean energy. was dead on arrival. obama got $90 billion in his first months before his staff could find bathrooms in the west wing. just ridiculous. the stimulus was pouring unprecedented rivers of cash and renewables and energy efficiency and every imaginable form, advanced biofuel and electric vehicles and cutting edge research, smarter grid, cleaner coal, factories to make that green stuff in the united states. it was by far the biggest energy bill in history. kind of got me curious what else was in the stimulus everyone was laughing about. i did some investigative reporting with a google search. i learned that the stimulus had also launched race to the top which was a real moment. have you heard of race to the top? there was a huge deal in the education reform world that was supposed to transf

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. >>> tyco neutral from outperforming, crest suisse, maybe a spinoff or something. >> what is that?ht. probably the company is a spinoff. what i like is the target price was increased by credit suisse to $30. the old target was $29.48. so they're so good at credit suisse they no longer think $29.48, they now think 30. there's another 52 cents the analyst think is likely in terms of stock price. z zynga downgraded to neutral, the target is $3. denim maker true religion apparel said it was evaluating strategic alternatives which could include a possible sale of the company. never have understood, you know, these companies design a pair of jeans that cost like $400. how does that work? just because you want to -- >> a lot more every minute. >> denim or something, right? i don't know why that is. >> what was the only level -- label i really like is -- what is that men's club? >> the jackets with -- >> no, members only. >> members only. >> see, i would buy those because to have something, yes, a member of something. the 40-year-old virgin. yeah, a girl sees you something that says member

similar in ways to that spinoff if you recall where tyco spun off sealed air not that long ago when they the ratio or i don't know the ratio at this point, but i do know deutsche telecom would own a majority of the combined company. if you think back when t-mobile was valued at $39 billion by at&t, when it tried to acquire that company back early in 2011. perhaps not worth as much as that, but still worth a good deal more than pcs, which has a 4.5 billion market value. a number of interesting pieces go into this as well. you may recall back in, i think it was february, i reported that sprint was days away from acquiring pcs when its own board went against his ceo dan hessey and said we don't want to do this deal. is sprint still interested in pcs? i don't know. would it consider coming over the top to try to make another deal for pcs? unclear at this point as well. and, of course, you also have the larger issue of t-mobile in its place in terms of market share in the u.s., the fourth player. would it ever consider, that is deutsche telecom merging it with sprint and trust concern there i