Valueman, Thank you for the continued thorough analysis of both G* and Loral--I have benefited greatly over the last couple of years from your insight.
Do you have any thoughts on BS's comments on Loral's BB initiative. Could Loral maybe group some of the cash bleeding subsidiaries under a single umbrella (kind of like the recent re-structering announcements with C*), spin that division off while bringing aboard investors such as Microsoft, MCI-Worlcomm, etc. as partners with deep pockets. This would solve/relieve the cash flow problems, would allow WallStreet to value the new venture differently than Loral's CF positive businesses, etc. Bernard stated recently, that the BB initiative, to ba announce probably by Q2/2000, would have a similar structure to G*. So one would have to assume that means operators, ISP's, and others who would add expertise and value to the new company.
I am just trying to understand the various options available to BS at this time. He has said recently that cash is/will not be a problem. He has the reputation of a being very creative--even brilliant (as I have heard), and has a history of creating extraordinary shareholder wealth.
I personally believe that BS will pull it together. This is his life/passion. Hope I am right. I am going partly on faith that BS will handle the finances, and partly on my understanding of the market, and the enormous opportunities that remain.
What would it take--what would you like to see happen, at a minimum, before you would consider going long once again?
Any comments would be appreciated.
Regards,
Jeff |
