Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: James Clarke who wrote (15684)	10/24/2002 11:51:30 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78508

Jim Clarke: Thanks for alerting me to ASH's asbestos issue. I've gone back and relooked: 9/7/2 filing: "The uncertainties of asbestos claim litigation make it difficult to accurately predict the results of the ultimate resolution of asbestos claims. However, considering the foregoing and amounts already provided for, and given our historical litigation experience on resolved asbestos claims, the substantial amount of insurance coverage that Ashland has available from its insurance carriers and expected contributions from other responsible parties, Ashland does not believe that any liability resulting from environmental remediation, open asbestos-related claims or other legal proceedings will have a material adverse effect on its consolidated financial position, cash flows or liquidity." 1. They say they have a "significant number" of claims. 2. The above quote refers to "open" claims. I suspect new claims continue to be filed. How ASH might be affected by these, is unknown. 3. The above blurb may be ASH's most favorable guess about "the uncertainties of asbestos claim litigation". 4. "Expected contributions from other responsible parties"? Ha. I'd just like to see those other guys' opinions about that. ========================================== About $27 is a wonderful buy price for this company. Sigh... except for that one issue. On balance, it's not worth it to me. I leave it for more courageous or more knowledgeable folk. Sold my exploratory position this am. ================================= I've come to agree with you on these asbestos problems. I bought (and still have) NSI figuring the asbestos issue was adequately reserved for. NSI stock has declined, a worsening asbestos issue being a contributing factor. Somebody here (you?) also warned me about CBE's asbestos exposure, and I was able to get out before the company announced additional claims which sent their stock down sharply. (And it hasn't recovered). For me, it seems the most fitting equation is: Asbestos=Avoid finance.yahoo.com Paul Senior