SHW [Archive]

**Hawk4Value** Fri Feb 24, 2006 12:33 am

SHW
Hi Blast,

Court ruling recently slammed SHW stock. Historically company has been strong with good ROA, ROE, and FCF. Is the stock in value territory and what is your opinion about court ruling effect on the company.

Thanks.

**blast_investor** Fri Feb 24, 2006 1:42 am

Hi Hawk4Value:

The court ruling did not specify dollar amount on the lead paint damage. I would expect more lawsuits on this issue and I do not know the exact dollar amount on the damage.

I would shy away from this stock. This stock is still not that cheap. Investors still have not factored in huge damage from the lawsuits.

Almost every old house in America has lead paint problem. it is well known that lead paint can poison kids. This is scientific fact. Historically, landlords and builders were targeted for lead paint lawsuits. Usually, when a landlord was found guilty of lead paint poisoning kids, the landlord pretty much lost investment on the house without insurance.

By the way, even without poisoning kids, the landlords can lose the real estate investment from the huge penalty of lead paint environmental violations. The cost of lead paint can be pretty large potentially.

I would imagine that the litigation cost for Sherwin-Williams to be large. If landlords and builders were responsible for lead poisoning problems, it is reasonable that Sherwin-Williams and other paint makers should be responsible for the lead problem as well.