If my opinion on this diparity meant anything, which it doesn't so I'll let everyone know, I'd have to say that GSTRF is so hot because of several reasons...
1) It's float is tiny, 20 million shares or so. LOR has over 200 million. Demand for those 20 million is quite high due to expectations of very high subscription rates to the GSTRF service.
2) That GSTRF is not in the acquisition mode, nor does it look like it plans to at any time soon. LOR has made a lot of moves already, and will continue to do so, thus making its debt load a little heavier. There has been a lot of expenses that LOR has made, because it is so diversified, compared to GSTRF. LOR is on a spending spree, expanding to new orbital slots, markets, etc.
3) The shorts still have a heavy hand in LOR, while I would imagine that the short in GSTRF is a lot smaller now that it is at an all-time high, and seems to be moving higher. I would guess that the shorts are covering big-time. Meanwhile, in LOR, the shorts are not in any squeeze yet. ONSI is still not completed, and there has always been a sizable short % (currently 8.3 million shares or 4.1%)
4) LOR has, and always will be, a long-term value/growth play. We all think its undervalued at the moment, and we all expect phenomenal growth over the next 3-5 years and beyond. GSTRF is a much hotter play, that is, there was a lot more hype around GSTRF than around LOR, though LOR is beginning to get some hype, exactly what Mr. Schwartz hates.
Those are just some ideas in my head to explain the disparity in movement. We shall see what happens in the future, either way, we'll all do fine.... ;)
geoff |
