This piece on Loral caught my eye in today's local newspaper.
Printed Monday, June 1, 1998, in the Contra Costa Times Motley Fool section, under the heading: FOOL SCOOP.
<<< Wild Swings
Buying stocks at the point of maximum pessimism, when there is "blood in the streets," is an age-old stock market injunction. The saying is rooted in an approach that attempts to take advantage of the wild swings in investor sentiment about certain stocks swings that are frequently unjustified by the underlying economics of the business involved.
One such current tale of woe involves communications satellite-maker Loral Space and Communications Ltd. The stock has tanked as Congress investigates whether the U.S. allowed sensitive missile technology to pass to the Chinese.
In February; after some internal debate, the Clinton administration approved a waiver authorizing Loral to send a communications satellite to China for launch atop a Chinese Long March rocket. At the same time, Justice Department officials were investigating charges Loral engineers might have illegally provided Chinese space officials with missile-guidance technology secrets. The information was contained in a report for Western insurers, who were looking into a previous Chinese rocket explosion. Loral insists the charges are completely unfounded and that the report aimed "to obtain information from the Chinese, not to help the Chinese solve their problem."
Investors may want to take a closer look at the issues involved, unclouded by political rhetoric. If Congress determines that Loral is blameless and that future, technology initiatives are not jeopardized, Loral may soar again.>>>
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