LSATA: Dr. Malone Plays "Hide the Sausage" With some LSATA Equity
(Thanks goes to wp off the raging site for uncovering this one.)
MORNING MEETING NOTE November 7, 2000
Robert G. Routh 212.409.2085 / David J. Brenner 212.409.2040
Liberty Satellite & Technology, Inc. (LSATA - $7.062 - OTC Bulletin Board)
Near-Term/Long-Term Rating: Strong Buy
Risk Factor: OTC BB Equity
LSATA: Dr. Malone Plays "Hide the Sausage" With some LSATA Equity; Don't Know
Why, Must Be A Reason
* In a recent SEC filing, we found it interesting to note that
Dr. Malone has played a little game of "hide the sausage" with the bulk of his
holdings in Liberty Satellite and Technology. Once again, we aren't exactly
sure as to why, but we certainly don't question the architect, as we are sure
he has his reasons.
* It seems that the good doctor recently personally transferred
almost 3.9 million shares of LSATA and LSATB to an entity known as TP
Investments, Inc., of which Dr. Malone is the sole shareholder.
* TP Investments, Inc. then transferred those shares to Liberty
TP Management, Inc. for 2,390 non-voting preferred shares of Liberty TP
Management, Inc. at an estimated value of over $23 million.
* As a result of the aforementioned transactions, Dr. Malone now
directly owns 370,014 shares of LSATA and indirectly over 3.9 million shares
via his equity interest in TP Investments - which owns the preferred stock in
Liberty TP Management, Inc. - which owns the LSATA and LSATB shares outright.
* Why this was done, we don't know. Could be for estate
planning, could be in preparation of a transaction, or could be because the Dr.
Malone was bored (which we doubt!).
* We continue to expect the company's NMS listing to take place
any day now, as the company has already applied for such a listing.
* We are maintaining our Strong Buy rating on shares of Liberty
Satellite and Technology (Formally TCI Satellite, Inc.), are keeping the
company's shares on the Ladenburg Thalmann Focus List, and advise investors to
purchase the company's shares at this time. "W"e don't think the good Dr. went
through this elaborate shell game with his holding in LSATA because he simply
had nothing better to do.
Ladenburg Thalmann & Co. Inc. 590 Madison Avenue New York, NY 10022 |
