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

To: Maurice Winn who wrote (12437)	5/8/2000 7:19:00 PM
From: bryston	Respond to of 29987

<Any report to make? Avidly waiting...> Hey, Maurice, are you on New Zealand time, again? Check back tomorrow...same Bat time, same Bat channel. :-)

To: Maurice Winn who wrote (12437)	5/9/2000 10:09:00 AM
From: K_Meister	Respond to of 29987

I'm not sure if this would interest anyone on the GSTRF thread, but C.E. UNTERBERG TOWBIN seems to think that Loral is a good buy at these prices... ************************************************************** * Loral reports in line after adjusting for Globalstar EPS drag. Due largely to Globalstar, the company reported an EPS loss of $0.49 versus the consensus estimates of $0.36. Loral's share of Globalstar's loss accounted for $0.26 per LOR share. * Globalstar myopia has engulfed Loral shareholders for some good reasons and others that are not so good. Concerns that Loral might be used to support a Globalstar business that does not ultimately end in value creation is a natural concern. However, at these already suppressed price levels, Loral shares seem to largely ignore the fact that the company has a core business that is worth well in excess of the company's current value even with Globalstar as a negative. The negative Globalstar treatment reflects worst-case treatment of credit enhancements. Today, most analyses seem lost in a Loral stock that is so positively correlated to Globalstar that it appears that Loral doesn't own a number of prize assets: Skynet, Data Services and SS/L. * Loral is trying to aggressively build shareholder value. We believe some added confidence in management is warranted. We believe efforts by management will likely prove fruitful and not only produce their own value impact, but possibly allow the rest of Loral to be seen in a more positive light. In the past, we thought Loral might build shareholder value by monetizing its satellite ISP, Cyberstar v1.0; however, capital market conditions make that notion challenging, at least for now. Other strategies may be simply to attract other strategic investors/alliances or somehow externally improve Globalstar's liquidity position. On the theme of improving shareholder value, Loral made strides today to clarify its Globalstar funding position, saying that it wouldn't fund Globalstar so much as to jeopardize Loral, which is a minor positive. It would have been likely perceived as a major positive, if the stance were a little tougher. At this point, it's fair to say that we're not certain of much in the way of specifics, other than that Loral is fairly cheap and management is keenly aware of its responsibility to build shareholder value, a task we know it takes very dear to heart. We believe it is easy to lose sight of management's commitment in this very fluid situation. Bear in mind, we believe the downside risk in Loral shares remains minimal at these levels from an intrinsic value standpoint, while the upside potential is meaningful. Granted, a Globalstar imbroglio could hurt sentiment in the short-term, as it already has, but that won't spell ultimate disappointment so long as management keeps to its commitment of not overexposing Loral. In this, we trust management and continue to support Loral; thus we reiterate our Buy rating. * Loral has liquidity, but not likely in quantities sufficient to allow the company to concurrently expand Skynet and the existing Data Services business while supporting Globalstar. As of quarter-end, Loral had $565 million in combined cash and unused bank lines, which would be more than adequate to fund minimal company needs and provide some limited liquidity support to Globalstar. We take comfort, however, in that Loral realizes that it has a number of emerging service businesses that need fuel soon, if not today. It's also important to acknowledge that Loral can't exhaust its liquidity in 2000 since it needs a cushion entering 2001, especially if Globalstar isn't doing well. Therefore, we believe Loral has significant capital needs and, not quite as much liquidity as the $565 implies.