|
Is anyone else following Unocal's lawsuit in Los Angeles? As Forbes explains it, this patent litigation, if successful, could add 50% to Unocal's earnings THIS YEAR ALONE! More specifically, the Street expects Unocal to earn approx. $2.30 a share in fiscal 1997; however, the lawsuit represents potential additional earnings of $280 million (or $1.13 a share) if victorious. THE SITUATION: Unocal recently divested itself of the boat anchor refining and marketing assets, in exhcange for cash to fully focus on worldwide exploration & production. But...they held on to one trick - a gasoline patent - that covers motor fuel currently MANDATED in the State of California, and others soon to come. RESULT: The Majors are pissed-off!! Unocal beat them to the punch on the patent, so the big boys got mad and decided to sue. If Unocal wins (and the trial is underway as I write), BIG MONEY; if they loose, we still have a very solid E&P company with a bright future and plenty of BUY recommendations by the major Wall Street brokerage houses. END RESULT: huge potential, low risk. And yes, options are traded. Any comments are appreciated. |
