No James, if the day comes when MO loses suits to the tobacco industry
I don't think they can sucessfully spin off tobacco, but they can
declare bankrupty, like Johns Mansville did. In the case of Dow
Corning, the company was always separate from Dow Chemical and Corning
who were merely stockholders, and so far as I know, Dow and Corning
have both been sued in the breast implant cases, and I think they
settled by adding some money to the pot. In the case of MO, so far
as I know, the tobacco company is not a separate legal entitiy with
separate owners, but it may be. If it is not separate already, then
they are liable for any cigarettes currently being sold, should such
liability later be found to exist.
I am not betting that this will or won't happen, nor am I advocating
either alternative. I am just saying that if you invest in MO you
should be aware that there is a risk of bankruptcy at any time. If
it never comes, your returns should be handsome because it is a well
run business. Nevertheless, I choose to invest elsewhere, but you
are welcome to buy MO.
In listing their products, don't forget Miller beer...
Carrl |
