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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (11497)	1/5/2002 3:30:53 PM
From: jim_p	Read Replies (2) \| Respond to of 23153

Some interesting facts on HAL: 1. Suits are against subsidiaries of HAL, not HAL. 2. Over 2000 companies (including 50% of the Dow Jones) are involved in the same asbestos cases as HAL. 3. HAL has settled 194,000 cases since 1976 (30,000 in 2001) as follows: a. 40% required no payment, b. highest ever paid was $1.8MM (next highest $150M) c. total cost $143MM ($737.11 per claim) d. total cost paid by insurance was $105MM ($541.24 per claim) e. net cost to HAL was $38MM or $195.88 per claim 4. Average time to settle a new claim is 5-6 years. 5. The trend in the average cost per claim is down not up. (it was up with MDR) 6. Total current exposure is 146,000 claims. 7. HAL's estimate to resolve the current outstanding claims is $704MM ($4,821 per claim) 8. Current estimated insurance coverage on outstanding claims $579MM ($3,965 per claim) 9. Net cost to HAL is estimated to be $125MM or $856.16 per claim. 10. HAL's leverage is less than 30%. 11. HAL has $1.7 Billion in working capital. 12. HAL's cash flow is in excess of $1 Billion per year. 13. Major on going effort to overhaul the asbestos litigation process in congress. Lets say HAL is wrong by a factor of 10X...........big F*&^$% deal. Not even one years cash flow if all current claims cost 10 times HAL's estimate. If HAL had to pay all 146,000 claims time 10 tomorrow, HAL could write a check and kiss it good buy. I think the market will soon realize there has been a huge over reaction in HAL's case. (the ENE syndrome) See ya at $12.00 on Monday. Closed in after market at $10.35 (20% gain from the bottom) JMHO, Jim