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I think 14 or 15 is a pretty good price for this stock...before the lawsuit fair value was about 51. As far as the lawsuit goes, it goes without question that there will be an appeal. This will take about 2 years to resolve itself, so the stock will probably receive a nice upward pop in the next few months. Also, if the case is not overturned in appeals, the award amount certainly will be reduced (ie, the award was based on Mississippi residents giving themselves a tax break).

The facts of the case make the award amount seem ridiculous...Mississippi cancelled the contract 10 days before AMS planned to implement Phase II - they still use Phase I which handles about 20% of their cases. Kansas uses AMS' system which recently won an award....AMS mistake was doing business with a state like MS, which has a history of such lawsuits, without putting protection clauses in the contract.

In short, 14-15 or even a little bit more is probably a good deal...but don't expect too big of a jump.

J
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