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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (9822)	2/1/2000 12:22:00 AM
From: James Clarke	Read Replies (4) \| Respond to of 78476

re: big tobacco going bankrupt New York state and several other states are selling bonds based on the revenues from their tobacco settlements. If the companies file for bankruptcy, those bonds are toast. It would be very interesting to know whether those bonds trade at a lower yield than Philip Morris stock - I would bet its close, but I will try to look it up at work tomorrow. If my hunch is the case, what a wonderful long-short trade that would be, to isolate the entire upside of Philip Morris for free. I'll get back to you on this. The fact that they sold these bonds tells me Philip Morris is not going bankrupt. Let alone the tax revenues, which are getting simply obscene in my opinion (I'm paying them). The government has too much of a stake in them prospering to put them out of business. The risk of downside in Philip Morris is that the government is collossally stupid. Which is why I still haven't bought the stock.