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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Scientist who wrote (7172)	1/3/2000 8:29:00 PM
From: llwk7051@aol.com	Read Replies (1) \| Respond to of 10852

Rocket Scientist, Approximately how much do you estimate the rest of Loral's business is worth per share? Market is only valuing it at about 5 or 6 dollars a share if I understand the relationships. Thanks, Robert

To: Rocket Scientist who wrote (7172)	1/4/2000 3:04:00 AM
From: Reagan DuBose	Read Replies (3) \| Respond to of 10852

RS, I updated an analysis I did a couple of years ago of Globalstar's value contribution to LOR. The update is given below. Please feel free to point out any errors. The corporate structure of Loral and Globalstar is so complex it makes my head spin. Nevertheless, let me see if I can figure out the LOR/GSTRF relationship. I'll take it step by step, with definitions. LOR is Loral Space & Communications Ltd, trading on NYSE under the symbol LOR N(LOR) = number of outstanding LOR shares = 282 million (as of 11/29/99) GTL is Globalstar Telecommunications Ltd, which is publicly traded on NASDAQ under symbol GSTRF. There were 82.027 million GTL shares outstanding as of 6/30/99. GLP is Globalstar Limited Partnership, which is not publicly traded. There are 52.3 million GLP partnership shares. GTL is the general partner of GLP. Through various holdings, LOR has effective ownership of 43% of GLP. Prior to the 28 May 97 2:1 split of GTL shares, GTL and GLP shares were on a 1:1 basis. Since that date, another 2:1 split occurred, and one GLP share is now presumed to be worth four GTL shares. P(GTL) = price of one GTL share (NASDAQ - GSTRF) P(GLP) = value of one GLP partnership share = 4 * P(GTL) N(GLP) = total GLP partnership shares = 52.3 million V(GLP) = market value of GLP = N(GLP) * P(GLP) = N(GLP) * 4 * P(GTL) LOR owns 43% of V(GLP) and the number of outstanding LOR shares is 282 million, so the per share value of LOR's ownership of GLP is: 0.43 * N(GLP) * 4 * P(GTL) / N(LOR) = 0.43 * 52.3 million * 4 * P(GTL) / 282 million = .319 P(GTL) This shows that a dollar change in GTL price is worth about 32 cents per LOR share. At present GTL price of $46.75 (01/03/2000), the value of Globalstar to Loral is about $14.91 per share. Hope this isn't too far off the mark. Corrections would be appreciated! Reagan