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Technology Stocks : Loral Space & Communications

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To: Dragonfly who wrote (2326)3/24/1998 2:50:00 PM
From: Valueman  Read Replies (1) of 10852
 
<Please correct me if I'm wrong>

Let me correct you. There is insurance, but no amount of insurance will cover the delay that results, and the resulting setback to launch-of-service date. That would be devastating to the share price. Note how AsiaSat fell from 24 to 13 after the problems with the launch of AsiaSat 3. If you assume two launch failures, and those failures are Zenit launches, you have lost 24 birds(not 8)--not a trivial matter. Right now, they can make 4 sats per month. There will be 8 spares available, but when they could be launched is a big question. Launch capacity is tight, and an investigation into a failure effectively eliminates the particular launch vehicle from service for a significant period of time. So, the bottom line is that we certainly do have to worry about launch failures.
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