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Technology Stocks : Loral Space & Communications

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To: JMD who wrote (6261)6/9/1999 9:10:00 PM
From: RMiethe  Read Replies (4) of 10852
 
JMD: It's been said by me 100 times on this board: Loral's price is a direct result of analyst coverage on it. And analysts have their own "desiderata" to use the word of another. For 23 years I have been managing money, and it is the analyst who controls the fate of a company's stock, till it can no longer be controlled.

Think of my comment what you will. I have been doing this too long to consider that I can be wrong on that point. Analysts have decided not to recommend Loral strongly until and if Globalstar works as investors expect. It is a joke that the analyst has gotten the company into that bind. But read my posts on the disparities over analysts' price objectives of Loral, and you will see the point.

Loral needs a recommendation from both Goldman and Merrill. Either that or after the next Globalstar launch announce its commercial bank financing at 8-10%, and a purchase of another satellite provider.

That will take the edge off the Globalstar requirement analysts have placed on Loral-- topline growth, you know.

I noticed from Yahoo posts a fabulous marketing point for Globalstar the other day-- not one poster reacted to my posting it on the Globalstar board.

Instead, all the talk on the Globalstar board here is technical details and planes and spectrum and echos and delays.

The marketing is too important, and that posters on the Globalstar board have no reaction to the Austin Powers recommendation as a spokesman for Globalstar to me drolly shows a woeful lack of concern with what winds the consumer's clock-- Globalstar needs a marketing effort of the like such as a character like Austin Powers can bring. Engineers and Wall Street wizards can now step aside, and let's get some marketing ideas on the board here.

The morgue like seriousness of these SI posts over two months, without an awareness of marketing dynamics and verve as essential to Globalstar, makes me worry about the dimension of understanding posters here have about what sells a product. No consumer will give a whit about the technical numbers and technology questions on these SI posts here 4 months from now. What will get the consumer on board is a good marketing campaign from Globalstar of the kind I mentioned above from the Yahoo posts of a JOwens. From what I can see, he is from Great Britain.

The recommendation from that post was sent to BLS directly.

Loral liked it.
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