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Old 04-02-2003, 10:47 PM
adios adios is offline
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Join Date: Sep 2002
Posts: 2,298
Default Re: How About Shorting Altria Symbol MO?

If it's a very bad idea then a long would be right no? I appreciate your input and wildbill's. We'll see how this one develops.

I read an article in the WSJ talking about the states relying on MO cash flows. I have no idea what their loan covenants are like if they go into chapter 11. Looking over their financial statements they pay a lot of money in dividends and stock buybacks. I calculated it to be about $10 billion for the previous 4 quarters. As wildbill stated they probably can get financing and they can suspend the divy and the stock buyback. I see these cases as ongoing though even though they've settled some. The lawyers will come up with new ways bring about action and the juries are sure to be sympathetic to those suing MO.
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