Ok. So let's assume the lawsuit is a non-issue. I'm looking at a company that according to analyst estimates will have more cash at hand by the end of 2005 than its entire market cap. Is the only reason the stock is down due to the thinking that interest rates will rise rapidly and squeeze the net interest margin, and also the economy will get weaker and increase delinquencies and foreclosures? I for one think that the fed is not going to raise as much as people think. In fact, I think there is a good chance by mid next year, they may have to take back some of the raises. I also don't think the foreclosures will climb that rapidly because as high as real estate prices have climbed, borrowers can always sell and get out rather than face foreclosure.
"Are you saying that if FMT loses, then they need to renegotiate the contract? In either case, if DOI made a bad call, how much are we talking about here, 100 million, 200 million, 500 million, 1 billion??? What are they looking to get out of it. What is the likelihood that FMT wins without having to pay more than 50-100 million in legal fees?"
I am saying that FMT will not lose this case. FMT was under DOI guidance. The DOI had a deal in place with FMT that would have cost the company $70 mil. However, the DOI wanted to conserve the insurance co earlier, in order to attain priority over other states, so they went with FMT to a judge and had the conservatorship -- including the NOLs to FMT -- approved specifically. Now the DOI wants it both ways. Sorry, Charlie. That dog won't hunt.