Loral Space & Communications Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Loral Space & Communications

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Rocket Scientist who wrote (7172)	1/4/2000 3:04:00 AM
From: Reagan DuBose	Read Replies (3) of 10852

RS, I updated an analysis I did a couple of years ago of Globalstar's value contribution to LOR. The update is given below. Please feel free to point out any errors. The corporate structure of Loral and Globalstar is so complex it makes my head spin. Nevertheless, let me see if I can figure out the LOR/GSTRF relationship. I'll take it step by step, with definitions. LOR is Loral Space & Communications Ltd, trading on NYSE under the symbol LOR N(LOR) = number of outstanding LOR shares = 282 million (as of 11/29/99) GTL is Globalstar Telecommunications Ltd, which is publicly traded on NASDAQ under symbol GSTRF. There were 82.027 million GTL shares outstanding as of 6/30/99. GLP is Globalstar Limited Partnership, which is not publicly traded. There are 52.3 million GLP partnership shares. GTL is the general partner of GLP. Through various holdings, LOR has effective ownership of 43% of GLP. Prior to the 28 May 97 2:1 split of GTL shares, GTL and GLP shares were on a 1:1 basis. Since that date, another 2:1 split occurred, and one GLP share is now presumed to be worth four GTL shares. P(GTL) = price of one GTL share (NASDAQ - GSTRF) P(GLP) = value of one GLP partnership share = 4 * P(GTL) N(GLP) = total GLP partnership shares = 52.3 million V(GLP) = market value of GLP = N(GLP) * P(GLP) = N(GLP) * 4 * P(GTL) LOR owns 43% of V(GLP) and the number of outstanding LOR shares is 282 million, so the per share value of LOR's ownership of GLP is: 0.43 * N(GLP) * 4 * P(GTL) / N(LOR) = 0.43 * 52.3 million * 4 * P(GTL) / 282 million = .319 P(GTL) This shows that a dollar change in GTL price is worth about 32 cents per LOR share. At present GTL price of $46.75 (01/03/2000), the value of Globalstar to Loral is about $14.91 per share. Hope this isn't too far off the mark. Corrections would be appreciated! Reagan

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next