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Technology Stocks : Loral Space & Communications

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To: Valueman who wrote (6076)5/7/1999 10:37:00 AM
From: RMiethe  Read Replies (1) of 10852
 
Hence, Vman, the use of Intelsat transponders to fill in where Mabuhay will not. That is planning.

And, as far as "planning" is concerned, no one knows if LOR owned Mabuhay transponders originally because of contingencies it had foreseen, or if it just happened to own them will-nilly. Seems to me that non-satellite people are not sufficient information sources (myself included) to see if a managment was/was not prepared for a contingency. The ability to lease off Intelsat transponders, when and if a demand for those transponders in East Asia materializes, shows planning. As it stands now, Orion 3 would have had idling space well into next year-- BLS stated it would generate only $26 million in business next year.

In that regard it appears that the Orion not launching at this time diminishes capacity (still in oversupply in East Asia), while LOR is in the situation to have funds it did not previously have as it prepares to build a satellite if and when needed for that region.

The Orion 3 not launching successfully is not the best news to hit LOR shareholders, for certain. But the analysis of management preparedness, especially when none of us is privy to what takes place at Loral executive meetings, appears to me to be speculative at best, and generally not informative.

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