Jane, that is super information re: HAL. The stock market and psychology is very important in short term trading these days.
I haven't studied HAL much at all, but sometimes (not often) these type situations offer interesting reward to risk scenarios. With Enron's debacle fresh on our minds, there is probably a greater chance that an over-reaction in a company's stock like HAL can occur.
That said, I am finding it hard to determine whether it is cheap now and prefer stocks that I can value more easily. SLR, for instance, after it bounced a couple times off its 52 week low and the selling slowed way down, was a great Reward to Risk play for me under $10.00.
However, I must admit that I found your links provided very interesting food for thought. Certainly I'll research it more, when before I may not have. If their litigation exposure and cash position mentioned is even close to accurate, then I think you may have gotten a bargain. Was that info taken from their filings, do you know?
Also, not that I expect anyone to know or share this information, but a couple more questions I would ask are: "How seriously has Congress jumped into this asbestos mess and is there any chance that the insurance companies can skirt some or all their future liability?" |
