Bill: All good questions on the satellite contracts. Don't know if any of these contracts are material enough to be on file at the SEC, but will take a look. I would think that despite the turmoil, these two developments may present an opportunity for LOR to acquire greater equity positions in these two Asian satellite companies. Valueman had previously suggested that L-Star may be an aquisition possibility (well, it looks like the price, as a "distressed situation," may have gotten substantially cheaper). Perhaps Echostar would be interested in upping their ante as well. Assuming 30% equity capitalization, the total equity requirement for the $800 million ABCN project would be $240 million, still a hefty pricetag (assuming the debt financing would still be available).
I guess one big question would be: given the $US denomination of the assets (satellites) and thus expenses (depreciation), is there still adequate demand (at a higher price point) to make these services economic in Asia? The impact of these currencies free fall has got to be pretty severe on the pricing of these services in the local currency. Perhaps Readware has some thoughts on that subject as he seems to be close to the business plans. Presumably, there is a substantial impact on G* business in Asia as well, as a result of the currency devaluations.
Separately, the big block trades look a little suspect, don't you think? As an ONSI shareholder, I hope that the negative LOR sentiment
will persist long enough (can it survive the G* launch) to get a better (lower) determination price, so I'll get more LOR shares for my ONSI. But one thing is for sure, volatility is up already. . .
I'll post any details on satellite contracts if I can dig any up.
Cheers,
Thomas |
