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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: Marty Rubin who wrote (2169)	7/12/1999 12:10:00 AM
From: vinod Khurana	Read Replies (1) \| Respond to of 2693

CNNfn reports......Iridium on road to default However, several analysts said they were cautious about Motorola's near-term prospects because of concerns about the company's exposure to Iridium, which provides phone service anywhere in the world through a network of 66 satellites. Iridium (IRID) has struggled to sign up subscribers and has not been able to pay its debts. The company has received three extensions on its $800 million credit facility, and several analysts said Iridium would likely default on the loan. Motorola owns 18 percent of Iridium and has guaranteed a large portion of the company's debt. Some analysts have questioned whether Motorola has reserved enough money to cover its costs should Iridium default. "We continue to be concerned about Motorola's exposure to Iridium," said Mark Roberts, telecommunications analyst with Everen Securities. "I would not be surprised to see Motorola take a fairly sizeable one-time charge to essentially write off Iridium and take reserves against any potential exposure." S.G. Cowen's Uzdelewicz said he did not expect Motorola to record a charge for Iridium until the satellite phone company declared bankruptcy -- something he said was inevitable. "There is no way this thing can survive," he said. Shares of Motorola rose 1-3/4 to 99-11/16 on the New York Stock Exchange Friday. Shares of Iridium fell ½ to 8-13/16 ---------------------------------------------------------- Get out while you can and take the loss. This stock is going to be delisted over the next six - twelve months. Nobody is buying this expensive piece of crap expect those who have operations in the remote part of the world or in the Amazon jungle.