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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable.

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To: Brian Coakley who wrote (1489)3/12/1998 3:35:00 PM
From: Bernard Levy  Read Replies (1) of 2063
 
Hi Brian:

The posts on LOR thread by analysts who follow the
company (Readware and Valueman) seem to suggest that
LOR is slightly overvalued right now. According to
Readware's model, the value should be about $26
(his track record in prediction LOR's price
is phenomenal). This suggests that if the market
gets choppy, you might be able to buy LOR in the
$25-$26 range. However, keep in mind that until this
week, LOR was primarily followed by buy and hold investors.
If the price goes down, all these folks rush in to buy
more shares. This dampens very severely all
downdrafts.

The other key aspect of LOR's price is that it is
closely tied to the success of Globalstar launches.
There will be a launch in April (I think) and
one this summer. The April launch uses Boeing as a
contractor, and will probably not increase the price
a lot. The summer launch is with a Russian rocket.
Its failure rate is higher but its capacity
is also higher. If the launch is a success, LOR's
stock price will jump sharply. If it fails, it
will go down, but Globalstar has one spare launch
in its business plan, so that deployment of Globalstar
would only be delayed. To get LOR at a reasonable price,
I would advise to buy before the Russian launch
this summer.

Best regards,

Bernard Levy
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