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.

Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (7163)	9/2/1999 3:31:00 PM
From: djane	Respond to of 29987

8/20 Prudential report on LOR/G* (via LOR yahoo thread) Top>Business & Finance>Investments>Sectors>Services>Communications Services>LOR (Loral Space/Communication) Prudential's opinion (as of 8/20) by: RichardJStewart (62/M/Media, PA) 19027 of 19031 LORAL SPACE & COMMUNICATIONS LTD (LOR) Closing Price as of 09/01/99: $18.250 Company Description Investment Opinion: 08/20/99 at $18 1/4 Company Description Loral Space & Communication (LOR), headquartered in New York City, New York, is a vertically integrated company that competes in the space industry. Its primary areas of business are satellite manufacturing and fixed satellite services (FSS). The company provides broadcast transponder leasing, domestic and international corporate data networks, global wireless telephony, broad-band data transmission, Internet connection, and digital audio radio services. Loral also holds a 42% interest in Globalstar, a wireless satellite telecommunications business. Investment Opinion: 08/20/99 at $18 1/4 We rate LOR a HOLD for the following reasons: * Although we believe that Loral's core operating businesses are performing well, and have solid growth prospects going forward. However, Loral's investment in the mobile satellite telephony venture Globalstar (GSTRF) has grown to represent over half of its enterprise value. There is a lack of visibility regarding business segment performance due to uncertain development costs and uncertain performance of new businesses such as GlobalStar and Cyberstar . This lack of visibility causes us to maintain our cautious stance. * We believe Globalstar continues to have considerable market risk while requiring more capital to fund development. Although Globalstar (GSTRF) and Iridium (IRIDQ) are different types of satellite systems, the recent difficulties experienced by Iridium in adding subscribers has made us question the size of the actual market for mobile satellite telephony services, reducing visibility of future performance. Loral has used its credit quality to guarantee $500 million in debt and did not provide further direct investment in GSTRF. There should be additional Globalstar financing requirements, however, these will likely be met by vendor financing arrangements, the sources of which remain nebulous at this time, though, undoubtedly, in part by Globalstar suppliers. With Loral guaranteeing Globalstar's new debt, the company is shouldering more of the risk than the other partners. We believe the risk reward of this investment is not in favor of Loral and we continue to remain cautious on Loral shares. * Cyberstar, Loral's broadband satellite system, is one of their major priorities. This system is still in development, nevertheless, LOR believes that it is the key for long-term viability as it represents a large market opportunity much larger than Globalstar's market. They believe that there is the likelihood that many of today's very lucrative satellite based private VSAT networks will eventually be folded into tomorrow's broadband systems. LOR has positioned itself to be the first to the market and the lowest cost system. Posted: 9/2/1999 2:37 pm EDT as a reply to: Msg 1 by YahooFinance

To: djane who wrote (7163)	9/2/1999 5:08:00 PM
From: djane	Respond to of 29987

WSJ. Motorola Pushes Ahead In China; Eyes $10B Sales 2002-2003 September 2, 1999 - By Erik Guyot - BEIJING -- While some multinational companies in China are scaling back their operations, U.S. electronics giant Motorola Inc. (MOT) is pushing ahead. "We'd like to be a US$10 billion company by the year 2002 or 2003," said Jenny Wang, chief representative of Motorola (China) Electronics Ltd. in a recent interview with Dow Jones Newswires. Reaching that target of US$10 billion in annual sales may seem like a tall order. Last year, the company's main production facility in Tianjin near Beijing had sales of US$2.8 billion. But the staff at Motorola's production facilities are gearing up for expansion. E.L. Tay, vice president and director of operations for cellular phone production, said the company's factory in Tianjin, China, is expanding capacity to boost output by 50% next year. Currently, the factory produces one million cellular phones a month. About 85% of the factory's output is sold locally in China while the remainder is exported to the U.S. and Europe. "This is becoming a major cellular site," said Tay of the factory. Thanks to China's relatively low labor costs, production there is about 15-20% cheaper than in Singapore, and 30-40% cheaper than in Europe, Tay noted. For Motorola, China has grown to become its single-largest market outside the U.S., accounting for about 11% of the company's total sales last year, said Wang.