WILDCARDS (doubles or more)
by: luxetveritasus (YAHOO Messages)
Long-Term Sentiment: Strong Buy 06/13/03 11:54 am
Msg: 207458 of 207480
When a new deck of cards is being dealt, as is the case now, every once in a while a WILDCARD shows up. Any WILDCARD that shows up can more than double the value of your hand.
1) ASSET SALE -- can, upon signing, so improve LOR’s financial status that all the financial risks disappear -- allowing the stock to take off.
2) RECAPITALIZATION -- the LOR debt chews up 60% of the cash flow. Any significant recapitalization also significantly reduces LOR’s financial risk --also allowing the stock to take off.
3) WINNING MUOS CONTRACT -- in six months time, the military may well give Raytheon the MUOS $6 billion contract, in which LOR is a major participant -- it is worth more than LOR’s total present market capitalization.
4) ACQUISITION OF LOR -- with Harrosh in for 10% (more now?), the votes might be there for a friendly acquisition by anyone who wants to use the free sat capacity LOR has in its business (McCaw, Gates, AOL, cable companies, telephone companies etc.) -- any tender offer is at least a triple and could come at any time.
5) ACQUISITION OF LOR -- others might want to enter the sat manufacturing business, like Raytheon, CISCO, Q and a host of others -- more than a triple.
6) SAT ORDERS START FLOWING -- sooner or later, the sat orders have to start flowing -- a double once it starts, and from there on it depends on the volume of orders and LOR's market share.
This leaves out the small stuff, like G*. Any of the above is material, and could happen overnight.
In my view, there is just no justification for LOR selling at such a low price, because the value is there and will be unleashed in one of these ways. And soon.
LUX |
