Seeking Alpha
Editor's notes: ADT's steady cash flow and unique model should keep it safe from new competitors. Buysider Nathan Hamilton calls for 50% upside as investors feel more secure about the landscape.

Investment Thesis

ADT Corp. (ADT) made headlines in the last months after speculation of Bill Ackman taking a $1bn position in an undervalued company. Ultimately, Air Products (APD) was his stock of choice. Although ADT wasn't his pick, many investors recognized how undervalued ADT is and the potential to unlock value, which I estimate to offer 52% upside (and just as important, limited downside of 10%).

ADT is the largest North American provider of traditional security monitoring services and it is attempting to extend the brand into home automation with its Pulse ecosystem. Pulse will act as a technological platform to deliver home automation on a large scale through a distribution network unmatched by existing security...

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