How to Play the Big Savings and Loan Lawsuit Message Board

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Non-Tech : How to Play the Big Savings and Loan Lawsuit

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To: Kevin Chesser who wrote (16)	7/8/1996 6:03:00 PM
From: Robespierre	of 63

The absolute maximum for CALGZ (trading currently @$11.5) is $40. This number is based on the the ammount of goodwill that CalFed lost PLUS the loss of profit potential from that goodwill. Barron's came out with the $40 figure on Saturday. Check out www.barrons.com and go to "follow-up" section by Andrew Barry. On Friday there was a court ruling in an unrelated case that set a precedent that would limit the ammount of damages CalFed could recieve from loss of profit. However, the issues in that case (involving Wellf Fargo) were manifestly different (although I'm not a lawyer).. Neverthess, even if CalFed recieves no damages from loss of profit potential or lost interest, I out the value of CALGZ at $20-$25 - that is, if CalFed only gets back the nominal value of the goodwill it lost (which was 400-500Million, I'm unsure of the excat #.)

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