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Technology Stocks : Loral Space & Communications

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To: Bonnie Bear who wrote (2906)5/11/1998 1:35:00 PM
From: Jeff Vayda  Read Replies (1) of 10852
 
Would you say providing cradle to grave satellite services is profitable? (manufacture to orbit or manufacture to transponder leasing) Loral does this and to a larger percentage wrt over all business than Lockheed does. Most companies make varying profits on their products and services and some even take losses in some areas to ensure markets for related concerns. Loral does not build a launch vehicle. This allows Lockheed to be able to offer a lower margin on its launch services portion to its satellite customers. As far as I have read, Lockheed does not lease transponders on corporate satellites. (and if they do it certainly is not to the extent that Loral plans) The lease of transponders is more additive to the overall corporate bottom line than launch services or satellite manufacture. Adding the variables gives me the answer that Loral is a better place for my money, at this time.

I dont want to get into a debate of LMT vs LOR. LMT made me money. Loral is and will continue to make me money. My personal DD leads me to continue to favor Loral.

Jeff Vayda
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