Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Brendan W who wrote (13928)	2/19/2002 2:36:12 PM
From: Brendan W	of 78746

UST. I have a position in UST acquired in 1/2001 at $25.44 that I'm thinking about adding to. UST is a return on asset (high 20s, low 30s) and gross margin (79%) powerhouse. My interest is based partly on two WAGs ... that there litigation profile is improving and that the Conwood Antitrust verdict will be reversed. There are other "inflections" as well... (a) Revel, their smokeless, spitless poach will be released nationally this year... it would seem to have the potential of a mega-brand like Skoal, Copenhagen (b) cost of cigarette pack is now greater than a smokeless can, (c) smokeless will increasingly benefit from restrictions on smoking (d) the view among public health professionals that smokeless is less harmful than cigarettes may gain traction (as apparently it has in Sweden). My concern is that should UST fail to reverse the Conwood antitrust verdict that other antitrust claimants may use the Conwood verdict as precedent and successfully pursue other antitrust claims. I am an amateur on legal matters. Does anyone have any comment on this? I wouldn't be so bothered by the $1.1B judgment and $200,000 interest if I knew that closed the matter.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next