Philip Morris - A Stock For Wealth Or Poverty (MO) Message Board

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Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO)

MO 58.05

-0.6%

Dec 19 3:59 PM EST

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To: Xianming Liu who wrote (6239)	6/7/2001 3:25:53 PM
From: md1derful	Read Replies (2) of 6439

X: Certainly stock not behaving too badly today...see below: "A Los Angeles jury yesterday awards $3 billion in punitive damages to Richard Boeken, a smoker who got lung cancer then sued Philip Morris. That's billion, with a B. Presumably the award will be reduced or overturned on appeal, but to understand just how preposterous it is, consider how little of it would actually reach Boeken if Philip Morris didn't appeal. Figure Boeken's lawyer is working for a one-third contingency, so he'll take $1 billion, leaving Boeken with $2 billion. Punitive damages are subject to income tax, at a top federal rate of 38.6% (after July 1) and a California rate of 9.3%. That cuts Boeken's $2 billion to $1.042 billion. And since he's unlikely to live to see the repeal of the death tax in 2010, his heirs will probably see just 45% of the remaining sum, or a paltry $468.9 million--less than one-sixth of the original $3 billion." This may turn out yet to be a yawner in terms of the stock price, but I fear we will go down a bit from here...hopefully I'm wrong..but this happened with the Oregon award, if I recall....I will play this by buying puts into any strength, while remaining long the Jan 03 calls..we'll see..probably change my mind tomorrow!! doc

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