ADT Intensifies Sales Scam Protection, Shares Flat - Analyst Blog


Security and protection services provider The ADT Corporation ( ADT ) recently intensified its crusade against deceitful sales by rival firms to protect its brand image and loss of reputation. The company has even announced a reward of $25,000 for a video evidence of such deceitful acts to prosecute the offenders. However, share prices did not have any material impact from the increased vigil against serial lawbreakers and traded relatively flat on May 28, 2014.

ADT has been flooded with customer complaints from unsuspecting patrons, especially elderly citizens, wherein victims ended up unnecessarily replacing their existing products and signing new contracts with another provider. The customers alleged that they were duped to believe serious malfunctioning of ADT products or insolvency of the company to effect unwarranted replacement with a new security system.

In order to spread awareness and up the ante against deceptive sales practice, ADT has even issued a series of do's and don'ts for customers. The company has filed several lawsuits for such criminal activities and has vouched to continue fighting against companies and their employees who swindle its customers. For the record, ADT had recovered around $4 million last year from lawsuits and infringements to its brand image.

Headquartered in Boca Raton, FL, ADT offers electronic security products along with a wide range of interactive home and business automation and monitoring services for residences and small businesses in the U.S. and Canada.

ADT's electronic security and home/business automation solutions primarily include installation and monitoring of residential and small business security and premises automation systems. These products are designed to detect intrusion; control access; react to movement, smoke, carbon monoxide, flooding, temperature and other environmental conditions and hazards; and address personal emergencies, such as injuries, medical emergencies or incapacitation.

ADT currently carries a Zacks Rank #3 (Hold). Other stocks that are worth considering in the industry include Nielsen Holdings N.V. ( NLSN ), CoreLogic, Inc. ( CLGX ) and Huron Consulting Group Inc. ( HURN ), each carrying a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ADT , CLGX , HURN , NLSN

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