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Technology Stocks : Loral Space & Communications

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To: JMD who wrote (5681)4/4/1999 2:51:00 PM
From: Pseudo Biologist  Read Replies (1) of 10852
 
JMD, a related point is articulated in a recent piece by Cramer:

thestreet.com

The article focuses more on how the "traditional" players that have seen their turf chewed upon by the Amazons and Yahoos of the world (say, Barnes and Noble, Wal-Mart, the big media companies) can defend themselves by essentially spinning out "web" units; this raises cash and to some degree dilutes the internet universe.

Paraphrasing from the article (link may be good for TSC subscribers only):

<<What prevents a major outfit with assets in cable, movies ,etc that has a small Web division, from killing two birds with one stone by issuing millions of shares at 15-40 bucks in their internet unit? In one move, you would:
(1) grab all of the capital that would have been used for another umpteen companies
(2) you would get enough money to actually do something "interesting" in the internet arena, and
(3) you now have a "currency" that would allow you to make dilutive acquisitions that would not damage the mother ship>>>

Following your analogy, this type of strategy may very well apply to the fiber vs. satellite arena. Now, where is that "small internet/web division" one can hype-and-spin for Loral? -G-
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