Philip Morris (MO) Message Board

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Non-Tech : Philip Morris (MO)

MO 56.70

+0.6%

Nov 3 3:59 PM EST

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To: Geoff who wrote (25)	3/24/1997 1:34:00 PM
From: Jack L. Dlugach	of 50

Geoff: That's because, as usual, it's written in Greek (aka legalese). The main points appear to be that Brooke is settling out-of-court without admission of liability because the expense of taking all these cases to court would be higher than the settlement. As part of the settlement, Brooke will stringently curtail its advertising and contribute an initial $5M to the Attorney General's Fund and, thereafter, contribute from 2.5% to 5% of its pre-tax profits. I had heard that it was going to be 25% of the pre-tax profits over the next 25 years so, if I read that right, a cap at 5% is no big deal. Maybe that's why MO is trading up this morning--5% isn't enough to make a dent in MO's growth. As usual, it looks like the market overreacted.

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