Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Com Dev International -- Ignore unavailable to you. Want to Upgrade?

To: dale w ruckle who wrote (63)	8/16/1999 8:12:00 PM
From: Serge Collins	Read Replies (1) \| Respond to of 216

The media's emphasis on Iridium is overblown. Com Dev is a lot more than the contract with Motorola. It has contracts with many satellite companies and the Iridium contract had already been factored into the share price. Their problems have been obvious for many months. From what I understand, Motorola is about to retake control of Iridium and pump money into the company. That will be good for Com Dev. The Wireless Group is improving and should be profitable this year. The Space Group is having some problems, but the restructuring will likely help that. The revenue stream has weakened but remains strong enough to produce good profit. The company announces a revenue shortfall of less than 10% and the market lops more than 40% off the share price. The key for the company will be to re-align their costs with their lower revenue. I think the restructuring can address this. Despite Iridium, the company has a healthy backlog. The stock is trading at less than 1x sales. Not too many tech stocks can be bought for a ratio of under 1x sales. It will be interesting to see what the company announces on September 8. At these prices, I'm buying in and will add on further weakness. Looks to me like some analysts are out for blood or are trying to talk the stock down so they can buy it cheaply.