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Technology Stocks : Loral Space & Communications

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To: Jeff Vayda who wrote (10206)9/25/2002 3:54:09 PM
From: Jeff Vayda  Read Replies (1) of 10852
 
Given the consolidation that the 'experts' say is bound to happen in the industry - Why are all the eyes pointed at LM? They currently have excess capacity in the sat manufacturing house. Would it make more sense for an outside player to buy up the Loral expertise on the cheap?

IMHO, it is likely that a new player, with designs on being a one stop shop will come into play. The DoD is pushing integrated solutions for the next generation of battle systems. Northrope, General Dynamics and Raytheon could all add to their integrated systems proposals with the addition of Loral's sat expertise.

Time will tell, but from where I sit, LM is not the best fit for anyone except LM. (all they gain is a reduction in competition capacity.)

Jeff Vayda
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