At a friends insistence I picked up 4Kshares in 2003 for about $10K and sort of ignored them ever since. I know I'm real late in asking, but how can a company in chapter 11 reach a PE of 70? Clearly I'm not unhappy with the situation and thankful for not having pushed the sell button every $10 since it was $20, but how can this price be sustained?
I believe that the PE is distorted due to a nonrecurring charge in 2012 of approx $350M which would be about $4.60/ share of addl income. This would bring the PE down into mid teens. As I recall, this charge was related to the funding of the asbestos fund for future claims. Some others here might have better specifics.
Still hear. Bought at 9.00 two days before the end of the Montana trial, (2009). Something just did not add up after reading the transcripts during the trial. I have been to Libby several times since. Had to see for myself. Still adding in at this level. Its 32% of my portfolio now.