Philip...it looks like we already have some interested members talking
about Loral Space. There's Maurice from NZ who is very knowledgable
about CDMA. He is a good source of info. Also, there is Ramsey, who
is also has good info. I just work at Loral in Houston and try to
seperate fact from hall talk. Sadly to say, most at work don't have
much to say about the latest in communications. I have been pushing
some guys to look at how our world is so rapidly changing, all because
of the latest communication achievements. I want to keep my portfolio
somewhat diversified, but am very top heavy in all of the RBOC's, and
AT&T. Now that Loral Aerospace is merged with Lockheed (our facility
folks changed the signs on our buildings today), the added Loral Space
only increases my communications holdings. Last night on CNN, Bernie
Schwartz, the Loral CEO (also the new CEO of Loral Space) discussed the
merger with Lockheed, but he also highlighted the opportunities of
satellite communications. He stated that if someone invested $10,000
in Loral back in 1972, that $10,000 will now be $8,000,000. Impressive,
huh? Bernie's strategy is to profit by acquisition. It looks like he
buys up defense related companies with a large pension reserve, raids it
and then pays off the debt it took him to acquire the company. Look
how he did with the Ford Aerospace deal back in Oct. 1990. Pretty clever,
especially now that he is in charge of Loral Space and Comm. With $714
million in the bank, and no debt, he is surely to go out hunting. Also,
one of his favorites, K&F Industries (the brake manufacturer) is owned
30% by Loral Space. It contributes about $60 million in annual revenues.
I wouldn't doubt he will sell that off, just because it doesn't fit in
with his satellite business. One thing that some financial analysts seem
to be concerned about is his age. He is about 70 right now, but guys
like him never get out of the saddle. And of course, he didn't build
Loral buy himself. Philip, I know that Loral Space has been a little
shakey since last Monday, but look what it did today. Also, on April
30th, those folks that had existing Loral stock will get their $38 and
one share of Loral Space. Now, if you believed in Bernie before, don't
you think that the new Loral Space will succeed too? Let's wait till
April 30th and see how many people will take their $38 and put it back
in. One other thing, and if Maurice or Ramsey or anyone else cares to
comment, please feel free. If Loral Space/GlobalStar is to beat out
Motorola/Iridium, wouldn't they need a manufacturing arm to build the
hand held units? Motorola already does, and that is the one thing that
concerns me. Since Loral Space doesn't, could they be a possible
buyout target from the likes of Lucent? Am I on the right track, or what?
After the Dec. 1996 breakup of AT&T, Lucent might pick a ripe plum with
Loral Space. Comments....? See ya, Don. |
